andritz ag results for the first quarter of...

May 6, 2011Results for the first quarter of 2011

2 Results for the first quarter of 2011 – May 6, 2011

Results for Q1 2011Good business development

Order intake:1,666 MEUR: +83% vs. Q1 2010

Order backlog:6,388 MEUR: +21% vs. December 31, 2010

Sales:924 MEUR: +26% vs. Q1 2010

Earnings:EBITA: 56 MEUR (+28% vs. Q1 2010),EBITA margin: 6.1% (Q1 2010: 6.0%)

Net income (excluding non-controlling interests):37 MEUR: +28% vs. Q1 2010

Significant increase of order intake and order backlog – EBITA rose slightly more than sales

Total assets and equity: Total assets: 4,262 MEUR (Dec. 31, 2010:

4,036 MEUR).

Equity ratio: 17.1% (Dec. 31, 2010: 19.7%).

Cash position and working capital: Gross cash: 1,726 MEUR (Dec. 31, 2010:

1,595 MEUR).

Net liquidity: 1,312 MEUR (Dec. 31, 2010:1,177 MEUR).

Net working capital: -726 MEUR (Dec. 31, 2010: -556 MEUR).

Solid balance sheet structure as of March 31, 2011 with high cash position and low net working capital


SalesPULP & PAPER and ENVIRONMENT & PROCESS strongly up

Group sales (MEUR)

Q1 2010

732.3

923.7

Q1 2011

+26%

+/- Q1 2011 vs. Q1 2010:

HYDRO: +4%

PULP & PAPER: +69%

METALS: -9%ENVIRONMENT & PROCESS: +57%FEED & BIOFUEL: +3%


1.666,0

Order intakeSharp increase in all business areas except FEED & BIOFUEL

Group order intake (MEUR)

Q1 2010

908.4

Q1 2011

+83%

+/- Q1 2011 vs. Q1 2010:

HYDRO: +49%

PULP & PAPER: +139%

METALS: +145%ENVIRONMENT & PROCESS: +47%FEED & BIOFUEL: -21%


Order intake and sales by regionWell balanced geographical exposure


6,388

5,2914,724

4,4354,2773,843

3,397

1,696

Order backlog: Strong increase, mainly driven byHYDRO, PULP & PAPER, and ENVIRONMENT & PROCESS

Group’s order backlog (MEUR)

+/- Q1 2011 vs. Q1 2010:

HYDRO: +20%

PULP & PAPER: +103%

METALS: +4%ENVIRONMENT & PROCESS: +62%FEED & BIOFUEL: -25%

2005 2006 2007 2008 2009 201031.3.2010 31.3.2011

31. 3. 2011 vs.

31. 3. 2010: +35%

+21%


EBITA, at 56 MEUR, 28% higher than in Q1 2010; thus, increasing slightly more than sales.

EBITA margin, at 6.1%, slightly up compared to Q1 2010 (6.0%).

Q1 2010 Q1 2011

EarningsSlight margin improvement, mainly driven by HYDRO

EBITA EBITA margin

43.7 MEUR

56.1 MEUR6.1%6.0%

Q1 2010 Q1 2011

+28%


Key figures Q1 2011 at a glance

15,856

5.6

6.1

7.4

10.3

151.1

38.8

3.0

55.0

52.0

56.1

68.7

923.7

6,388.0

1,666.0

Q1 2011

13,370

5.7

6.0

7.6

13.9

238.4

30.2

1.9

43.3

41.4

43.7

55.6

732.3

4,724.3

908.4

Q1 2010

+18.6%

-

-

-

-25.9%

-36.6%

+28.5%

+57.9%

+27.0%

+25.6%

+28.4%

+23.6%

+26.1%

+35.2%

+83.4%

+/-

7.2%EBITA margin

257.6MEUREBITA

14,655

6.9

8.6

68.8

704.5

177.0

2.4

247.9

245.5

307.3

3,553.8

5,290.9

4,131.9

2010

-Employees (as of end of period)

%

%

MEUR

MEUR

MEUR

MEUR

MEUR

MEUR

MEUR

MEUR

MEUR

MEUR

Unit

EBT

EBIT margin

EBITDA margin

Capital expenditure

Cash flow from operating activities

Net income (including non-controlling interests)

Financial result

EBIT

EBITDA

Sales

Order backlog (as of end of period)

Order intake

Project relatedchange in networking capital


HYDROContinued good business development

Unchanged solid market conditions: Continued favorable investment activity for modernization and rehabilitation of existing capacities in

Europe and North America, as well as for pumped storage power stations. Good project activity for new hydropower plants in the emerging markets. Solid investment activity for small-scale hydropower plants.

Strong order intake in all divisions.

Earnings and profitability significantly up compared to Q1 2010.

7,2667.4

27.19.0

32.7364.5

3,633.4583.9

Q1 2011

6,0656.6

23.08.1

28.4349.0

3,024.8391.4

Q1 2010

+19.8%-

+17.8%-

+15.1%+4.4%

+20.1%+49.2%

+/-

8.9%EBITDA margin

6,5307.5

118.0

139.91,579.23,376.01,870.1

2010


%

MEUR

MEUR

MEUR

MEUR

MEUR

Unit

EBITA marginEBITA

EBITDASalesOrder backlog (as of end of period)

Order intake


Good market conditions prevail: High project activity for modernization projects, capacity increases, and greenfield pulp mills. Solid market development for biomass/recovery boilers. Increasing project activity for converting existing pulp mills to mills for production of dissolving pulp.

Very favorable development of order intake, mainly due to Eldorado Brasil greenfield order. Greenfield order from Montes del Plata will be booked in Q2 2011.

Significant increase of order backlog and sales.

Profitability slightly up compared to Q1 2010.

PULP & PAPERVery favorable business development

5,3455.5

20.16.7

24.6367.0

1,862.4811.1

Q1 2011

4,3875.3

11.47.2

15.7217.0917.6340.1

Q1 2010

+21.8%-

+76.3%-

+56.7%+69.1%

+103.0%+138.5%

+/-

8.9%EBITDA margin

4,8517.3

80.7

98.41,105.31,099.61,388.4

2010


%

MEUR

MEUR

MEUR

MEUR

MEUR

Unit

EBITA marginEBITA


Order intake


Unchanged moderate market conditions: Weak project activity in Europe and North America continued due to low capacity utilization rates of

steel producers. Good project activity in emerging markets, especially in the stainless steel sector due to solid demand

from end-user industries.

Significant rise of order intake.

Sales, earnings, and profitability declined.

METALSSolid business development despite weak market conditions

9184.53.25.23.7

71.1554.3104.7

Q1 2011

9834.93.85.84.5

78.0535.242.7

Q1 2010

-6.6%-

-15.8%-

-17.8%-8.8%+3.6%

+145.2%

+/-

6.2%EBITDA margin

9375.4

18.4

21.2340.2521.0302.7

2010


%

MEUR

MEUR

MEUR

MEUR

MEUR

Unit

EBITA marginEBITA


Order intake


Unchanged good market conditions: Solid project activity for municipal sludge dewatering plants, especially in China. Favorable investment activity in the industrial process applications sector (especially in the mining and

chemical industries). Increasing project activity for municipal sludge drying plants, mainly in North America and Europe;

slightly rising demand for industrial drying plants.

Order intake significantly higher than in Q1 2010 due to both the strong organic growth and the first-time consolidation of acquired companies.

Sales and earnings up; profitability practically unchanged.

ENVIRONMENT & PROCESSSatisfactory business development

1,7905.34.67.06.1

87.6285.4130.9

Q1 2011

1,4315.43.07.44.1

55.7176.389.2

Q1 2010

+25.1%-

+53.3%-

+48.8%+57.3%+61.9%+46.7%

+/-

9.3%EBITDA margin

1,8167.9

29.5

34.8375.4242.3424.3

2010


%

MEUR

MEUR

MEUR

MEUR

MEUR

Unit

EBITA marginEBITA


Order intake


Solid market conditions: Good project activity in the animal feed sector, mainly in South America, Asia, and Eastern Europe. Satisfactory project activity for biomass/wood pelleting equipment, mainly in Europe and North

America.

Order intake below the high reference figure of last year.

Sales slightly up; earnings and profitability declined due to some project cost overruns.

FEED & BIOFUELModerate business development

5373.31.14.81.6

33.552.535.4

Q1 2011

5047.72.58.92.9

32.670.445.0

Q1 2010

+6.5%-

-56.0-

-44.8%+2.8%

-25.4%-21.3%

+/-

8.5%EBITDA margin

5227.2

11.0

13.0153.752.0

146.4

2010


%

MEUR

MEUR

MEUR

MEUR

MEUR

Unit

EBITA marginEBITA


Order intake


Outlook

HYDRO: Unchanged favorable market environment with solid project activity for both modernizations/upgrades and new hydropower plants.

PULP & PAPER: Good project activity for greenfield pulp mills to continue (next awards expected for end of 2011/H1 2012. Satisfactory development expected for power boilers and for modernization/conversion of existing plants.

METALS: Moderate project activity expected to continue, both in the carbon steel and stainless steel sectors. Selective project activity is only expected in the emerging markets.

ENVIRONMENT & PROCESS: Satisfactory project activity for both municipal and industrial sludge dewatering as well as drying plants.

FEED & BIOFUEL: Continuing good project activity for both feed and biomass pelleting equipment, particularly in South America, Asia, and Eastern Europe.

Expectations for the business areas

Based on these market assumptions and the high order backlog of almost 6.4 bn. EUR at the end ofQ1 2011, ANDRITZ expects sales in 2011 to increase substantially compared to 2010.

Net income for 2011 is also expected to rise compared to 2010.

Expectations for the Group


Certain statements contained in this presentation constitute ‛forward-looking statements.’ These statements, which contain the words ‛believe’, ‛intend’, ‛expect’ and words of similar meaning, reflect management’s beliefs and expectations and are subject to risks and uncertainties that may cause actual results to differ materially.

As a result, readers are cautioned not to place undue reliance on such forward-looking statements. The company disclaims any obligation to publicly announce the result of any revisions to the forward-looking statements made herein, except where it would be required to do so under applicable law.

According to IFRS.

Disclaimer

andritz ag results for the first quarter of...

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