Andritz AG — Interim / Quarterly Report 2017

Nov 3, 2017

INTERIM FINANCIAL REPORT FIRST THREE QUARTERS 2017

Key figures at a glance

Business areas	03
Management report	04

Business areas

HYDRO	13
PULP & PAPER	14
METALS	16
SEPARATION	18

Consolidated financial statements of the ANDRITZ GROUP

Consolidated income statement	19
Consolidated statement of comprehensive income	20
Consolidated statement of financial position	21
Consolidated statement of cash flows	22
Consolidated statement of changes in equity	24

Statement by the Executive Board	25
Share	26
Glossary	28

KEY FIGURES OF THE ANDRITZ GROUP

	Unit	Q1-Q3 2017	Q1-Q3 2016	+/-	Q3 2017	Q3 2016	+/-	2016
Order intake	MEUR	4,112.5	4,036.5	+1.9%	1,341.2	1,470.1	-8.8%	5,568.8
Order backlog (as of end of period)	MEUR	6,650.8	7,043.6	-5.6%	6,650.8	7,043.6	-5.6%	6,789.2
Sales	MEUR	4,143.6	4,239.3	-2.3%	1,364.6	1,478.1	-7.7%	6,039.0
Return on sales	%	6.7	6.2	-	6.6	6.7	-	6.4
EBITDA	MEUR	375.2	363.5	+3.2%	121.7	133.9	-9.1%	542.4
EBITA1)	MEUR	306.2	292.1	+4.8%	98.9	109.1	-9.3%	442.1
Earnings Before Interest and Taxes (EBIT)	MEUR	275.9	261.8	+5.4%	90.5	98.8	-8.4%	385.8
Earnings Before Taxes (EBT)	MEUR	275.1	277.5	-0.9%	86.2	105.6	-18.4%	398.4
Net income (including non-controlling interests)	MEUR	191.4	194.3	-1.5%	59.6	73.9	-19.4%	274.8
Net income (without non-controlling interests)	MEUR	189.8	194.2	-2.3%	59.0	73.9	-20.2%	274.6
Cash flow from operating activities	MEUR	129.2	345.7	-62.6%	47.7	145.1	-67.1%	366.6
Capital expenditure	MEUR	81.5	76.3	+6.8%	25.6	31.5	-18.7%	119.5
Employees (as of end of period; without apprentices)	-	25,686	25,547	+0.5%	25,686	25,547	+0.5%	25,162
Non-current assets	MEUR	1,898.4	1,905.4	-0.4%	1,898.4	1,905.4	-0.4%	1,913.7
Current assets	MEUR	4,394.4	4,105.1	+7.0%	4,394.4	4,105.1	+7.0%	4,284.9
Total shareholders' equity	MEUR	1,294.2	1,228.9	+5.3%	1,294.2	1,228.9	+5.3%	1,344.2
Non-current liabilities	MEUR	1,626.6	1,393.5	+16.7%	1,626.6	1,393.5	+16.7%	1,306.1
Current liabilities	MEUR	3,372.0	3,388.1	-0.5%	3,372.0	3,388.1	-0.5%	3,548.3
Total assets	MEUR	6,292.8	6,010.5	+4.7%	6,292.8	6,010.5	+4.7%	6,198.6
Equity ratio	%	20.6	20.4	-	20.6	20.4	-	21.7
Liquid funds	MEUR	1,768.8	1,494.9	+18.3%	1,768.8	1,494.9	+18.3%	1,507.1
Net liquidity	MEUR	878.2	974.0	-9.8%	878.2	974.0	-9.8%	945.3
Net debt	MEUR	-491.8	-542.5	+9.3%	-491.8	-542.5	+9.3%	-550.2
Net working capital	MEUR	-112.3	-261.0	+57.0%	-112.3	-261.0	+57.0%	-215.8
Capital employed	MEUR	826.5	727.2	+13.7%	826.5	727.2	+13.7%	772.2
Gearing	%	-38.0	-44.1	+13.8%	-38.0	-44.1	+13.8%	-40.9
EBITDA margin	%	9.1	8.6	-	8.9	9.1	-	9.0
EBITA margin	%	7.4	6.9	-	7.2	7.4	-	7.3
EBIT margin	%	6.7	6.2	-	6.6	6.7	-	6.4
Net income/sales	%	4.6	4.6	-	4.4	5.0	-	4.6
Depreciation and amortization/sales	%	2.4	2.4	-	2.3	2.4	-	2.4

1) Amortization of identifiable assets acquired in a business combination and recognized separately from goodwill amounts to 30,268 TEUR (Q1-Q3 2016: 30,382 TEUR; 2016: 41,913 TEUR); impairment of goodwill amounts to 0 TEUR (Q1-Q3 2016: 0 TEUR; 2016: 14,379 TEUR).

02

All figures according to IFRS. Due to the utilization of automatic calculation programs, differences can arise in the addition of rounded totals and percentages.

KEY FIGURES OF THE BUSINESS AREAS

HYDRO

	Unit	Q1-Q3 2017	Q1-Q3 2016	+/-	Q3 2017	Q3 2016	+/-	2016
Order intake	MEUR	939.0	1,060.9	-11.5%	425.0	469.5	-9.5%	1,500.3
Order backlog (as of end of period)	MEUR	3,038.7	3,393.5	-10.5%	3,038.7	3,393.5	-10.5%	3,269.6
Sales	MEUR	1,071.5	1,179.7	-9.2%	346.9	372.4	-6.8%	1,752.4
EBITDA	MEUR	94.0	105.8	-11.2%	36.8	34.0	+8.2%	167.2
EBITDA margin	%	8.8	9.0	-	10.6	9.1	-	9.5
EBITA	MEUR	73.3	82.4	-11.0%	30.1	26.4	+14.0%	127.6
EBITA margin	%	6.8	7.0	-	8.7	7.1	-	7.3
Employees (as of end of period; without apprentices)	-	7,365	7,626	-3.4%	7,365	7,626	-3.4%	7,260

PULP & PAPER

	Unit	Q1-Q3 2017	Q1-Q3 2016	+/-	Q3 2017	Q3 2016	+/-	2016
Order intake	MEUR	1,552.0	1,351.0	+14.9%	427.1	435.0	-1.8%	1,919.5
Order backlog (as of end of period)	MEUR	1,899.1	1,790.6	+6.1%	1,899.1	1,790.6	+6.1%	1,803.3
Sales	MEUR	1,474.3	1,534.0	-3.9%	483.4	553.6	-12.7%	2,094.4
EBITDA	MEUR	148.8	150.8	-1.3%	51.4	60.4	-14.9%	207.7
EBITDA margin	%	10.1	9.8	-	10.6	10.9	-	9.9
EBITA	MEUR	129.7	132.1	-1.8%	45.0	53.9	-16.5%	182.2
EBITA margin	%	8.8	8.6	-	9.3	9.7	-	8.7
Employees (as of end of period; without apprentices)	-	7,982	7,546	+5.8%	7,982	7,546	+5.8%	7,522

METALS

Unit	Q1-Q3 2017	Q1-Q3 2016	+/-	Q3 2017	Q3 2016	+/-	2016
MEUR	1,143.6	1,179.5	-3.0%	329.4	410.8	-19.8%	1,551.5
MEUR	1,302.8	1,484.4	-12.2%	1,302.8	1,484.4	-12.2%	1,369.0
MEUR	1,185.0	1,110.3	+6.7%	392.7	406.7	-3.4%	1,598.4
MEUR	106.6	87.5	+21.8%	24.2	34.4	-29.7%	141.7
%	9.0	7.9	-	6.2	8.5	-	8.9
MEUR	84.0	64.8	+29.6%	16.7	26.0	-35.8%	115.2
%	7.1	5.8	-	4.3	6.4	-	7.2
-	7,567	7,605	-0.5%	7,567	7,605	-0.5%	7,608

SEPARATION

	Unit	Q1-Q3 2017	Q1-Q3 2016	+/-	Q3 2017	Q3 2016	+/-	2016
Order intake	MEUR	477.9	445.1	+7.4%	159.7	154.8	+3.2%	597.5
Order backlog (as of end of period)	MEUR	410.2	375.1	+9.4%	410.2	375.1	+9.4%	347.3
Sales	MEUR	412.8	415.3	-0.6%	141.6	145.4	-2.6%	593.8
EBITDA	MEUR	25.8	19.4	+33.0%	9.3	5.1	+82.4%	25.8
EBITDA margin	%	6.3	4.7	-	6.6	3.5	-	4.3
EBITA	MEUR	19.2	12.8	+50.0%	7.1	2.8	+153.6%	17.1
EBITA margin	%	4.7	3.1	-	5.0	1.9	-	2.9
Employees (as of end of period; without apprentices)	-	2,772	2,770	+0.1%	2,772	2,770	+0.1%	2,772

MANAGEMENT REPORT

GENERAL ECONOMIC CONDITIONS

The economic recovery in the world's main economic regions that began in the previous quarters continued during the reporting period.

In the USA, growth of the gross domestic product (GDP) was revised upwards from its original level of 2.6 to 3.1% now for the second quarter of 2017. This is the strongest growth for two years. In the third quarter, GDP increased by 3% on an annualized basis. The main driver continues to be high domestic consumption. The US Federal Reserve (FED) left the key interest rate in a range between 1.00 and 1.25%, but announced that it will be gradually reducing bond purchases as from October 2017 in view of the booming economy, and then start selling bonds as a next step. The FED also signaled a further rise in interest rates for December 2017.

The economy in the euro zone saw a continuing strong upswing during the reporting period and is heading for its best annual economic result since the start of the financial crisis. Economic experts expect GDP growth of 2.1% in 2017. Positive impulses came both from the domestic economy and from foreign trade. Private consumption continued to be an important pillar of the economy. The European Central Bank (ECB) left the key interest rate at its record low of 0.0% in spite of the improvement in the economy and continues its bond purchase program.

The economic upswing also continued in the main emerging markets in the third quarter. China's economy saw increases both in the retail trade and in exports, while industrial production remained at a continuing favorable level. Russia and Brazil profited from increasing prices for raw materials and were able to emerge from their recession phases.

Source: Research reports by various banks, OECD

MARKET DEVELOPMENT

HYDRO

Global investment and project activity for electromechanical equipment for hydropower plants continued at a subdued level during the third quarter of 2017 – a few medium-sized projects were awarded selectively in Asia and North America. Due to the unchanged, difficult market conditions impacted by low electricity and energy prices, many modernization and refurbishment projects were postponed until further notice, especially in Europe. In the emerging markets, particularly in Asia, Africa, and South America, some new hydropower projects are currently in the planning phase. Good project activity was noted for pumps.

PULP & PAPER

The international pulp market continued its positive development in the third quarter of 2017. Supported by the continuing high demand for pulp – particularly from Chinese paper producers – accompanied by a stable supply, the price of short-fiber pulp (eucalyptus) increased from around 830 USD per ton at the end of June 2017 to approximately 890 USD per ton as of the end of September 2017. The price for NBSK (Northern Bleached Softwood Kraft Pulp) long-fiber pulp also increased slightly from around 890 USD per ton at the end of June 2017 to approximately 905 USD per ton at the end of September 2017.

Overall, the market for pulping equipment showed satisfactory project activity, particularly for modernization of existing pulp mills. No contracts were awarded for greenfield pulp mills, however there are some projects in the planning phase which are expected to be awarded in the medium term.

METALS

Project and investment activity in the metalforming sector for the automobile and automotive supplying industry (Schuler) remained moderate in the third quarter of 2017. As in the previous quarters, there were only orders awarded selectively by international car manufacturers or their suppliers. There are some individual projects in the award phase, however it cannot be estimated exactly at the moment when these orders will be awarded. Project and investment activity in the market segment served by Yadon, i.e. the Chinese automotive supplying industry, continued to see favorable development. During the reporting period, project activity for equipment used in the production and processing of stainless steel and carbon steel strip continued to increase slightly compared to the very low levels of the past few years. The main investment drivers were rising steel prices on the international markets and the improved financial situation of many steel producers. Competition on the equipment market remained challenging despite the somewhat improved market environment.

SEPARATION

The global markets for solid/liquid separation equipment continued to improve during the reporting period. The environmental as well as the mining and minerals sectors in particular showed good project activity. Investment activity in the chemical and food industries, however, remained low.

BUSINESS DEVELOPMENT

Sales

Sales of the ANDRITZ GROUP amounted to 1,364.6 MEUR in the third quarter of 2017 and were thus 7.7% lower than the reference figure of the previous year (Q3 2016: 1,478.1 MEUR). All four business areas noted a decline in sales compared to the reference period of last year. Sales in the HYDRO business area were 6.8% lower than in the previous year's reference period, mainly due to the decline in order intake in the past few years and the resulting lower sales generation. Similarly, sales in the PULP & PAPER business area declined (-12.7%) compared to the high level of the previous year's reference period, which was positively impacted by processing of a large order for a new pulp mill. The METALS (-3.4%) and SEPARATION (-2.6%) business areas also saw a decline in sales – however only slightly – compared to the third quarter of 2016.

Sales of the Group amounted to 4,143.6 MEUR in the first three quarters of 2017, thus declining slightly by 2.3% compared to the reference figure of the previous year (Q1-Q3 2016: 4,239.3 MEUR). The business areas' sales development at a glance:

	Unit	Q1-Q3 2017	Q1-Q3 2016	+/-
HYDRO	MEUR	1,071.5	1,179.7	-9.2%
PULP & PAPER	MEUR	1,474.3	1,534.0	-3.9%
METALS	MEUR	1,185.0	1,110.3	+6.7%
SEPARATION	MEUR	412.8	415.3	-0.6%

06

12 Asia (without China) (10)
------------------------------------

10 (15) South America

E F

4 (5) Africa, Australia

Share of service sales for the Group and by business area in %

	Q1-Q3 2017	Q1-Q3 2016	Q3 2017	Q3 2016
ANDRITZ GROUP	34	32	34	32
HYDRO	29	27	29	28
PULP & PAPER	43	40	42	37
METALS	24	22	25	23
SEPARATION	49	48	48	47

Order intake

The order intake of the Group amounted to 1,341.2 MEUR in the third quarter of 2017 and was thus 8.8% below the reference figure of the previous year (Q3 2016: 1,470.1 MEUR). The business areas' development in detail:

• HYDRO: In a continuing difficult market environment unchanged low electricity and energy prices the order intake amounted to 425.0 MEUR and was thus below the high reference figure of the previous year (-9.5% versus Q3 2016: 469.5 MEUR), which included some medium-sized orders. However, it was considerably higher than the order intake of the two preceding quarters (+107.8% versus Q2 2017: 204.5 MEUR; +37.3% versus Q1 2017: 309.5 MEUR).
• PULP & PAPER: At 427.1 MEUR, the order intake reached a solid level both for the capital and the service business – and remained practically unchanged compared to the previous year's reference figure (-1.8% versus Q3 2016: 435.0 MEUR).
• METALS: Order intake amounted to 329.4 MEUR and was thus 19.8% below the very high level of the previous year's reference period (Q3 2016: 410.8 MEUR), which included several medium-sized orders in the metalforming sector for the automotive and automotive supplying industries. The METALS processing sector saw very positive development, with a significant increase in order intake compared to the previous year's reference period.
• SEPARATION: Order intake amounted to 159.7 MEUR and was thus practically at the same level as for the previous year's reference period (+3.2% versus Q3 2016: 154.8 MEUR). While the solid/liquid separation sector was able to increase order intake substantially, the Feed Technologies sector remained well below the level of previous year's reference period.

In the first three quarters of 2017, the order intake of the Group, at 4,112.5 MEUR, was practically at the same level as for the previous year's reference period (+1.9% versus Q1-Q3 2016: 4,036.5 MEUR). While order intake decreased significantly compared to the previous year in the HYDRO business area (-11.5% versus Q1-Q3 2016: 1,060.9 MEUR), it increased significantly in the PULP & PAPER business area (+14.9% versus Q1-Q3 2016: 1,351.0 MEUR). The SEPARATION business area was also able to increase its order intake compared to the previous year (+7.4% versus Q1-Q3 2016: 445.1 MEUR) due to the positive development in the solid/liquid separation sector, which more than compensated the decline in the Feed Technologies sector. However, the METALS business area noted a slight decrease (-3.0% versus Q1-Q3 2016: 1,179.5 MEUR), with the order intake in the metalforming sector (Schuler) falling significantly, but this was compensated almost entirely by the increase in order intake in the METALS processing sector.

ANDRITZ financial report Q1-Q3 2017 Management report

Order backlog

As of September 30, 2017, the order backlog of the ANDRITZ GROUP amounted to 6,650.8 MEUR (-2.0% versus December 31, 2016: 6,789.2 MEUR).

Earnings

The EBITA of the Group decreased practically in line with sales. It amounted to 98.9 MEUR in the third quarter of 2017 and was thus 9.3% below the reference figure of the previous year (Q3 2016: 109.1 MEUR). At 7.2%, profitability (EBITA margin) remained at an unchanged solid level (Q3 2016: 7.4%).

Development by business area:

• In the HYDRO business area, the EBITA margin increased to 8.7% in spite of the decline in sales and was thus significantly higher than the figure for the previous year's reference period (Q3 2016: 7.1%). This is mainly due to the successful execution of some projects as well as the increase in service business.
• In the PULP & PAPER business area, profitability reached a very high level once again at 9.3% (Q3 2016: 9.7%), with very positive developments in both capital and service business.
• At 4.3%, the EBITA margin in the METALS business area was substantially lower than the level of the previous year's reference period (Q3 2016: 6.4%). The unsatisfactory development is largely attributable to cost overruns on some projects in the METALS processing segment.
• In the SEPARATION business area, the EBITA margin increased to 5.0% (Q3 2016: 1.9%).

In the first three quarters of 2017, the Group's EBITA amounted to 306.2 MEUR and was thus slightly higher than the previous year's reference figure (+4.8% versus Q1-Q3 2016: 292.1 MEUR). Profitability increased to 7.4% (Q1- Q3 2016: 6.9%). In this context it has to be mentioned that – as already reported – the second quarter of 2017 was positively impacted by an extraordinary effect mainly resulting from the sale of the Schuler Technical Center in Tianjin, China. Excluding this extraordinary effect, the Group's EBITA would have amounted to 282.6 MEUR and profitability to 6.8%.

The financial result decreased significantly to -0.8 MEUR (Q1-Q3 2016: 15.7 MEUR) as a result of the lower average net liquidity, substantially lower interest rates in Brazil as well as interest expense for both the Schuldscheindarlehen issued in June 2017 and the call option for the remaining stake in Yadon.

Net income (including non-controlling interests) amounted to 191.4 MEUR (-1.5% versus Q1-Q3 2016: 194.3 MEUR), 189.8 MEUR of which (Q1-Q3 2016: 194.2 MEUR) are attributable to the shareholders of the parent company and 1.6 MEUR (Q1-Q3 2016: 0.1 MEUR) to non-controlling interests.

Net worth position and capital structure

The net worth position and capital structure as of September 30, 2017 remained solid. Total assets amounted to 6,292.8 MEUR (December 31, 2016: 6,198.6 MEUR). The equity ratio reached 20.6% (December 31, 2016: 21.7%).

Liquid funds amounted to 1,768.8 MEUR (December 31, 2016: 1,507.1 MEUR), net liquidity amounted to 878.2 MEUR (December 31, 2016: 945.3 MEUR). The increase in liquid funds is mainly due to the issuance of a long-term Schuldscheindarlehen of 400 MEUR at a fixed interest rate in June 2017.

In addition to the high liquidity, the ANDRITZ GROUP also had the following credit and surety lines for performance of contracts, down payments, guarantees, etc. at its disposal:

• Credit lines: 160 MEUR, thereof 135 MEUR utilized
• Surety lines: 6,045 MEUR, thereof 2,721 MEUR utilized

	Assets
	A	B	C
A	Long-term assets: 30%		1,898.4 MEUR
B	Short-term assets: 43%		2,725.6 MEUR
C	Cash and cash equivalents and marketable securities: 27%		1,668.8 MEUR
	Shareholders' equity and liabilities A B	C	D
A	Shareholders' equity incl. non-controlling interests: 21%		1,294.2 MEUR
B	Financial liabilities: 14%		901.6 MEUR
C	Other long-term liabilities: 12%		785.1 MEUR

Employees

As of September 30, 2017, the number of ANDRITZ GROUP employees amounted to 25,686 (December 31, 2016: 25,162 employees).

Major risks during the remaining months of the financial year

General risks

ANDRITZ is a globally-operating company serving a large variety of industrial markets and customers. As such, the Group is subject to certain general and industry-specific risks. The active risk management implemented by the ANDRITZ GROUP for many years now serves both to safeguard the company's existence in the long term as well as to increase its value, and is thus an essential success factor for the entire Group. For the purposes of value-oriented company management, risk management is an integral part of the business processes and extends over all strategic and operative levels.

ANDRITZ has a Group-wide internal control system (ICS) whose main task is to identify nascent risks at an early stage and – if possible – to implement countermeasures promptly. This system is an important element of active corporate management. However, there is no guarantee that these monitoring and risk control systems are effective enough.

For further information on possible corporate risks and the internal controlling and risk management system, please refer to the ANDRITZ annual financial report 2016.

Current risks

The current political tensions between the USA and North Korea could have a negative effect on the world economy if it continues to escalate and thus could also have a negative impact on development of the ANDRITZ GROUP's order intake. However, the effects were not perceptible. The long-term economic impact of the United Kingdom (UK) leaving the European Union (EU) cannot be estimated yet. However, its influence is expected to be low. If economic growth in Europe dropped significantly as a result, this could have a negative impact on the business development of the ANDRITZ GROUP because Europe is the most important economic region for the Group, accounting for an average of 35-40% of its total sales. However, the ANDRITZ GROUP's direct business volume in the UK can be categorized as very small.

The medium- to long-term effects that the Trump administration will have on the global economy cannot be estimated at this point in time. ANDRITZ has a very strong local presence in the USA, with over 20 production and service locations and approximately 2,000 employees. All four business areas are represented in the USA. From today's perspective, the effects on ANDRITZ can thus be considered insignificant. However, if other regulatory measures were implemented that have negative consequences for non-American companies, the effects on ANDRITZ may well be substantial.

The Schuler Group, in which the ANDRITZ GROUP holds a majority stake, derives approximately 80% of its sales from the automotive industry, which is generally exposed to severe cyclical swings. If the low project and investment activity continued in the coming months, this could have a negative impact on the sales and earnings development of the Schuler Group and, as a result, of the ANDRITZ GROUP: From today's perspective, the possibility of further capacity adjustments and financial provisions cannot be excluded due to the difficult market environment.

Impact of exchange rate fluctuations

Fluctuations in exchange rates in connection with execution of the order backlog are largely hedged by forward exchange contracts and swaps. Net currency exposure of orders in foreign currencies is hedged by forward contracts. Exchange rate risks resulting from the recognition of equity are not hedged.

Changes in the exchange rate of the euro against many other currencies could have both a positive and a negative impact on the shareholders' equity as well as on the sales and earnings development of the ANDRITZ GROUP (translation effect).

OUTLOOK

For the world's main economic regions, economic experts expect continuing positive development of the general economic environment for the remaining months of 2017. From today's perspective further growth is expected in the world economy for 2018, with the emerging markets in particular – above all China, Brazil, and India – making a significant contribution towards economic growth.

The prospects for the ANDRITZ business areas in the remaining months of 2017 are largely unchanged compared to the previous quarter. A continuing difficult environment is expected in the HYDRO business area. Many modernization projects are still postponed or stopped temporarily, particularly in Europe, due to the continuing low electricity wholesale prices. Some larger, new hydropower projects are currently in the planning, especially in Southeast Asia and Africa, but award of these projects is expected only in the medium- to long-term. In the metalforming sector (Schuler), low project and investment activity is also expected in the fourth quarter of 2017. There are some individual projects in the award phase, however, at this point in time, it cannot be said when the orders will be awarded. In the METALS processing sector, the slightly better project and investment activity in the first three quarters – compared to the low level of the previous years – is also expected to continue in the coming months. In the PULP & PAPER business area, an unchanged, solid market environment is expected overall, especially for modernization of existing plants. From today's perspective, there will be most probably no order award for construction of a new greenfield pulp mill this year. In the SEPARATION business area, a continuation of slightly rising project activity is expected.

Based on the current business results and the prevailing project activity in the ANDRITZ business areas, the ANDRITZ GROUP expects a slight decrease in sales for the full-year 2017 from today's perspective. On the other hand, profitability (EBITA margin) is expected to at least reach the solid level of the previous year.

However, if – contrary to general expectations – the global economy suffers setbacks in the next few months, this could have a negative impact on ANDRITZ's business development. This may lead to organizational and capacity adjustments and, as a result, to financial provisions that could have a negative effect on the ANDRITZ GROUP's earnings.

HYDRO

IMPORTANT EVENTS

In July 2017, the first unit at the Laúca hydropower plant in Angola was handed over for commercial operation to the customer. The plant consists of a main power house with six units and an eco-power house with one further smaller unit. All six main units will be in commercial operation by the end of 2018. With a total capacity of 2,070 MW, Laúca will produce approximately 8,600 GWh of renewable energy per year – enough to supply about eight million Angolan households.

The first pipe section of the penstocks for the new Gouvães pumped storage power plant, Portugal, was installed successfully at the beginning of September 2017. ANDRITZ HYDRO received the order to supply the four 220 MW pump units and the penstocks from the Spanish energy utility Iberdrola S.A. in June 2016. The new penstocks are made of 12,000 tons of high-quality, corrosion-resistant steel. The steel pipes are up to six meters in diameter and have plate thicknesses of up to 165 mm.

Customer	Country	Scope of supply
SaskPower	Canada	Modernization of six units at the hydroelectric power station E.B. Campbell. The scope of supply includes a model test, manufacturing, installation and commissioning of the new 35-MW-Francis turbines, refurbishment of generator components, new hydromechanical components, and auxiliary equipment. The model test for the turbine was performed successfully already in August 2017 at the ANDRITZ HYDRO hydraulic laboratory in Canada.
Fengning Pump Storage Co. Ltd., State Grid Xinyuan Co. Ltd.	China	Delivery of two variable-speed pump turbines for the new Fengning II pumped storage power station. The scope of supply includes two pump turbine motor generator units with variable speed. Additionally, excitation systems, turbine governors, as well as protection and control systems will be supplied. The Fengning II underground pumped storage plant will be the world's largest pumped storage power plant, equipped with 12 x 300 MW pump turbine units. The two variable speed units will be delivered by ANDRITZ.
Megha Engineering & Infrastructures Ltd.	India	Order to equip three pumping stations with a total of 27 pumps. One pumping station conveys 660 cubic meters of water per second, which is then pumped via other stations to a reservoir. This reservoir is used for sustainable irrigation of agricultural land.
Enel Generación Peru S.A.A Peru		Refurbishing of the electromechanical equipment for the Callahuanca hydropower station. Due to the damage caused by flooding in the spring of 2017, all equipment parts affected will be refurbished. The hydropower plant comprises four horizontal Pelton turbines (3 x 16 MW, 1 x 35 MW).
Société Nationale d´Electricité	Democratic Republic of the Congo	Rehabilitation of the existing Mwadingusha hydropower station – performed as part of a consortium. The scope of supply includes replacement of four out of six units including auxiliary equipment, as well as stop-logs including disassembly, assembly, and commissioning. Mwadingusha has a total power output of 71 MW.
Wels Strom GmbH	Austria	Delivery of the electromechanical equipment for the Traunleiten small-scale hydropower plant. The existing hydropower plant will be replaced entirely over the next two years. The scope of supply includes two Compact bulb turbines (10.3 MW each), including important auxiliary equipment, two generators, as well as installation and supervision of commissioning.
Emgesa S.A.	Colombia	Supply of excitation systems for a total of five hydropower plants.

PULP & PAPER

IMPORTANT EVENTS

ANDRITZ successfully started-up key production technologies and equipment for Fibria's new pulp mill in Três Lagoas, Mato Grosso do Sul, Brazil. The scope of supply included a complete wood processing plant with four chipping lines, a hardwood fiberline with continuous cooking and Drum Displacer (DD) washing technology having the highest single fiberline capacity in the world (6,120 adt/d), two pulp drying lines based on the highcapacity Twin Wire Former technology, airborne dryers, cutter-layboy, and five baling lines. ANDRITZ also supplied the largest black liquor evaporation plant in the Western Hemisphere (evaporation rate 1,950 t/h), the largest recovery boiler in Latin America with a peak capacity of 8,250 tds/d, the largest white liquor plant in the world (18,900 m³ /d white liquor production) with a single line recausticizing plant and two lime kilns, a chloride and potassium removal system, and a liquid methanol plant for production of biofuel.

ANDRITZ has successfully completed start-up of the key production technologies for Metsä Group's new bioproduct pulp mill with an annual capacity of 1.3 million tons of pulp in Äänekoski, Finland. ANDRITZ supplied a wood processing plant, including three debarking and chipping lines, with the highest capacity in the world, a flexible softwood/hardwood fiberline with the highest softwood capacity in the world, the world's most energyefficient black liquor evaporation plant, and the largest recausticizing plant in Europe.

ANDRITZ built the world's most modern R&D center for tissue in Graz, Austria. The PrimeLineTIAC – Tissue Innovation and Application Center – allows all stakeholders in the tissue industry to conduct production tests and research under industrial conditions. It comprises a complete tissue production line that features eight configurations in one machine, including steel Yankee, TAD drums, and a modern stock preparation line. The first test runs are currently in progress, and the official inauguration will take place in March 2018.

Country	Scope of supply
Japan	EPC delivery of a new 50 MWe high-efficiency, biomass-fired PowerFluid boiler based on Circulating Fluidized Bed (CFB) technology for MES' biomass project in Ichihara. This is the first CFB order in Japan.
Hungary	PrimeLineCOMPACT VI tissue machine with shoe press, complete stock preparation system, turnkey supply including site supervision services.
Russia	Woodyard equipment delivery including three debarking lines, chipping line, two linear chip storage systems, chip screening, bark processing, conveyors, and automation equipment.
China	Installation of five multi-stage flue gas cleaning (FGC) plants for boilers burning Refuse Derived Fuel (RDF)/rejects. The scope includes the engineering for the entire FGC plant, supply of mechanical and electrical components, and advisory services at site for erection and commissioning.
Sweden	New 7-effect high dry solids evaporation plant to enhance energy efficiency at the mill.
South Africa	Delivery of a new baling line and a headbox modification.
China	Supply of a new Old Corrugated Cartonboard (OCC) line with a production capacity of 1,200 tons per day.
Finland	DD washer modernizations, lamella replacements at the evaporation plant, upgrade of the white liquor plant.
Chile	Seven years mill-wide maintenance contract.
	Dominican Republic Delivery of two universal recycling lines to process metal, car parts, oil filters, and electronic scrap. The recycling lines are the first that ANDRITZ will deliver to Central America.

METALS

IMPORTANT EVENTS

Schuler officially inaugurated its new group headquarters, the Schuler Innovation Tower (S. I. T.), in mid-August. The twelve-floor engineering and technology center will provide state-of-the art workplaces for 750 Schuler employees in the future.

Customer	Country Scope of supply
SAIC Volkswagen Automotive	China	Delivery of a Servoline XL press line with an output rate of up to 18 strokes per minute.
Scania	Sweden	Supply of a blanking line with cut-to-length shears. If the manufacturing process is restricted to simple cutting forms, cut-to-length lines are the ideal solution, both in terms of costs and of production rate.
US Mint	USA	Supply of a press with a pressing force of 1,600 kilonewtons for production of coin blanks.
Japan Mint	Japan	Delivery of three vertical coin minting presses.
Jakarta Mint	Indonesia	Supply of a medal minting press.
BMW Group	United Kingdom	Hydraulic and mechanical overhaul of the second and third stations of a press line and modernization of a coil line.
Uddeholm	Sweden	Supply of a fully automated, new heat treatment line for round and flat blocks, consisting of double chamber furnaces, charging machine, volume quenching tanks, and intensive air cooling chamber. The maximum charging weight is 25 tons. Production start is scheduled for autumn 2018.
Swiss Steel	Switzerland	Delivery of one new top- and bottom-fired walking beam furnace for billets with a capacity of 150 tons per hour. The scope of supply includes design, supply, erection supervision, and commissioning, as well as comprehensive training of the operating and maintenance personnel. The new furnace will replace the existing walking beam furnace. Production of the first hot blank is scheduled for November 2019.
Olympic Steel	USA	Supply of a new cut-to-length line for processing surface-critical materials. The customer is building a brand new facility to house this state-of-the-art line in the Chicago area. Commissioning is scheduled for the third quarter of 2018.
Gonvvama	China	Gonvvama is investing in door ring welding equipment for high-strength parts, comprising one SOUTRAC non-linear laser welding system and one SOUBLATE ablation system for its main production plant in Changshu. The welded parts are used for a car model that will be produced in China as well as in the USA.
voestalpine Automotive Components Linz GmbH	Austria	Supply of one SOUX laser welding system. SOUX is the larger version of SOUSPEED, which is designed for smaller tailored blanks, while SOUX is capable of welding all other parts with seams up to 1,600 mm long. voestalpine is the very first purchaser of the new and innovative SOUX system worldwide, as was also the case when they ordered their first SOUSPEED system. SOUSPEED and SOUX are the world's most effective laser welding systems for linear seams.
Acerinox Spain	Spain	Acerinox is investing further in increased quality and a further ramp-up in their production and has, therefore, selected ANDRITZ once again for revamp of the existing Annealing and Pickle Line #3. In particular, ANDRITZ METALS will modernize the process section as well as major parts of the entry section. The electrical and automation equipment will also be renewed.
Nanshan Aluminum	China	Nanshan – one of the quality leaders in aluminum production in China and producer of automotive and aerospace material – ordered two processing lines. One continuous heat treatment line and one continuous process treatment line will be installed at the company's new production site. Based on previous orders for aluminum melting equipment, holding furnaces, and the finishing sector, ANDRITZ METALS is now also Nanshan's preferred partner for the production of flat products for high-quality strip.

SEPARATION

IMPORTANT EVENTS

ANDRITZ SEPARATION opened a service academy in Den Helder, Netherlands, offering classroom-based training for customer operators and maintenance personnel as well as for ANDRITZ technicians. Participants can use a simulator, assemble and disassemble the actual machines, or take part in hands-on training for such skills as welding and grinding.

Customer	Country	Scope of supply
Dubai Municipality	United Arab Emirates	Supply of a complete drying line including the largest paddle dryers on the market, sections for pumping, drying, cooling, handling, and condensing, and process automation for chemical recovery.
ELB ENGINEERING SERVICES AFRICA LIMITED	South Africa	Three thickeners for rare earths.
American Laboratories Inc.	USA	One vacuum drum dryer for nutraceuticals and functional ingredients.
Murphy Process Engineering Ltd.	Ireland	One overhead membrane for municipal waste water treatment.
Istanbul Water and Sewerage Administration - Department of Waste Water Treatment	Turkey	One fluid bed system for municipal waste water treatment.
JV "Navruz International Corp."	Uzbekistan	One single drum dryer for baby food and cereals.
Bitop	Germany	One helix dryer for biopharmaceuticals.
City of Houston	USA	Service for thermal systems and spare parts.
JSC Metafrax	Russia	One paddle dryer for active pharmaceutical ingredients.

CONSOLIDATED INCOME STATEMENT

For the first three quarters of 2017 (unaudited)

(in TEUR)	Q1-Q3 2017	Q1-Q3 2016	Q3 2017	Q3 2016
Sales	4,143,619	4,239,295	1,364,621	1,478,106
Changes in inventories of finished goods and work in progress	99,019	85,189	10,403	38,256
Capitalized cost of self-constructed assets	6,063	3,145	1,257	1,245
	4,248,701	4,327,629	1,376,281	1,517,607
Other operating income	127,893	61,642	32,012	19,790
Cost of materials	-2,126,523	-2,207,936	-704,780	-801,211
Personnel expenses	-1,273,492	-1,236,584	-410,213	-407,740
Other operating expenses	-601,371	-581,226	-171,594	-194,557
Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA)	375,208	363,525	121,706	133,889
Depreciation, amortization, and impairment of intangible assets and of property, plant, and equipment	-99,283	-101,760	-31,220	-35,097
Earnings Before Interest and Taxes (EBIT)	275,925	261,765	90,486	98,792
Result from associated companies	-649	61	-334	72
Interest income	26,350	31,291	6,914	12,643
Interest expenses	-31,068	-22,217	-12,246	-7,260
Other financial result	4,542	6,561	1,413	1,381
Financial result	-825	15,696	-4,253	6,836
Earnings Before Taxes (EBT)	275,100	277,461	86,233	105,628
Income taxes	-83,732	-83,210	-26,705	-31,715
NET INCOME	191,368	194,251	59,528	73,913
Thereof attributable to:
Shareholders of the parent	189,796	194,181	58,990	73,932
Non-controlling interests	1,572	70	538	-19
Weighted average number of no-par value shares	102,008,137	102,112,228	101,926,058	102,095,346
Basic earnings per no-par value share (in EUR)	1.86	1.90	0.58	0.72
Effect of potential dilution of share options	112,014	0	88,734	0
Weighted average number of no-par value shares and share options	102,120,151	102,112,228	102,014,792	102,095,346
Diluted earnings per no-par value share (in EUR)	1.86	1.90	0.58	0.72

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

For the first three quarters of 2017 (condensed, unaudited)

(in TEUR)	Q1-Q3 2017	Q1-Q3 2016	Q3 2017	Q3 2016
NET INCOME	191,368	194,251	59,528	73,913
Items that may be reclassified to profit or loss:
Currency translation adjustments of foreign operations	-55,510	-3,984	-14,729	-4,583
Result from available-for-sale financial assets, net of tax	-8,599	-1,285	-2,742	1,388
Result from cash flow hedges, net of tax	1,048	3,746	659	576
Items that will not be reclassified to profit or loss:
Actuarial gains/losses, net of tax	0	-33,810	0	-7,517
OTHER COMPREHENSIVE INCOME	-63,061	-35,333	-16,812	-10,136
TOTAL COMPREHENSIVE INCOME	128,307	158,918	42,716	63,777
Thereof attributable to:
Shareholders of the parent	127,653	159,222	42,409	63,958
Non-controlling interests	654	-304	307	-181

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

As of September 30, 2017 (unaudited)

(in TEUR)	September 30, 2017	December 31, 2016
ASSETS
Intangible assets	167,941	201,253
Goodwill	555,652	563,427
Property, plant, and equipment	770,846	786,688
Shares in associated companies	5,750	6,830
Other investments	145,075	100,652
Trade accounts receivable	19,651	14,431
Other receivables and assets	43,738	52,922
Deferred tax assets	189,769	187,528
Non-current assets	1,898,422	1,913,731
Inventories	830,146	736,889
Advance payments made	121,071	105,709
Trade accounts receivable	761,867	840,138
Cost and earnings of projects under construction in excess of billings	659,216	726,307
Other receivables and assets	311,390	404,402
Receivables from current taxes	41,875	35,557
Marketable securities	148,558	110,796
Cash and cash equivalents	1,520,272	1,296,336
Assets held for sale	0	28,723
Current assets	4,394,395	4,284,857
TOTAL ASSETS	6,292,817	6,198,588
SHAREHOLDERS' EQUITY AND LIABILITIES Share capital	104,000	104,000
Capital reserves	36,476	36,476
Retained earnings	1,132,052	1,187,027
Equity attributable to shareholders of the parent	1,272,528	1,327,503
Non-controlling interests	21,626	16,728
Total shareholders' equity	1,294,154	1,344,231
Bonds	351,176	359,325
Bank loans and other financial liabilities	472,642	118,433
Obligations under finance leases	17,651	18,880
Provisions	572,985	586,534
Other liabilities	103,778	118,595
Deferred tax liabilities	108,347	104,300
Non-current liabilities	1,626,579	1,306,067
Bank loans and other financial liabilities	59,166	78,922
Obligations under finance leases	986	1,384
Trade accounts payable	423,243	499,737
Billings in excess of cost and earnings of projects under construction	1,088,584	1,117,963
Advance payments received	306,884	256,690
Provisions	514,422	532,317
Liabilities for current taxes	63,265	101,056
Other liabilities	915,534	958,072
Liabilities relating to assets held for sale	0	2,149
Current liabilities	3,372,084	3,548,290
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES	6,292,817	6,198,588

CONSOLIDATED STATEMENT OF CASH FLOWS

For the first three quarters of 2017 (unaudited)

(in TEUR)	Q1-Q3 2017	Q1-Q3 2016
Earnings Before Taxes (EBT)	275,100	277,461
Interest result	4,718	-9,074
Depreciation, impairment losses, and reversals of impairment losses of fixed and financial assets	99,283	101,760
Result from associated companies	649	-61
Changes in provisions	-15,439	-45,839
Gains/losses from the disposal of fixed and financial assets	-59,883	-1,539
Other non-cash income/expenses	-3,245	8,914
Gross cash flow	301,183	331,622
Changes in inventories	-114,227	-97,820
Changes in advance payments made	-21,012	10,058
Changes in receivables	42,223	63,196
Changes in cost and earnings of projects under construction in excess of billings	41,024	97,668
Changes in advance payments received	57,539	709
Changes in liabilities	-49,745	-85,457
Changes in billings in excess of cost and earnings of projects under construction	-281	81,574
Change in net working capital	-44,479	69,928
Interest received	27,080	27,749
Interest paid	-24,972	-17,371
Dividends received	181	2,076
Income taxes paid	-129,767	-68,307
CASH FLOW FROM OPERATING ACTIVITIES	129,226	345,697
Payments received for asset disposals (including financial assets)	57,606	13,806
Payments made for intangible assets and for property, plant, and equipment	-82,898	-78,667
Payments made for non-current financial assets	-83,517	-8,902
Net cash flow from company acquisitions	-13,435	-98,717
Net cash flow from sale of subsidiaries	23,966	0
Payments received for securities and other current financial assets	105,273	107,275
Payments made for securities and other current financial assets	-46,098	-106,133
CASH FLOW FROM INVESTING ACTIVITIES	-39,103	-171,338
Cash inflow from issuance of Schuldscheindarlehen	400,000	0
Repurchase of own corporate bonds	-4,019	-2,947
Cash receipts from other financial liabilities	28,511	42,347
Repayments of other financial liabilities	-69,855	-33,690
Dividends paid by ANDRITZ AG	-153,090	-137,802
Purchase of non-controlling interests and payments to former shareholders	-816	0
Dividends paid to non-controlling and former interest holders	-2,095	-2,458
Purchase of treasury shares	-25,058	-10,723
CASH FLOW FROM FINANCING ACTIVITIES	173,578	-145,273

ANDRITZ financial report Q1-Q3 2017 Consolidated statement of cash flows

(in TEUR)	Q1-Q3 2017	Q1-Q3 2016
CHANGES IN CASH AND CASH EQUIVALENTS	263,701	29,086
Changes in cash and cash equivalents resulting from exchange rate fluctuation	-40,861	19,267
Effect of changes in consolidated group on cash and cash equivalents	1,096	0
Cash and cash equivalents at the beginning of the period	1,296,336	1,255,746
Cash and cash equivalents at the end of the period	1,520,272	1,304,099

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

For the first three quarters of 2017 (unaudited)

	Non Attr ibut able to sha reho lder s of the rent pa					ntro lling -co inte rest s	Tota l sh hold ' are ers ity equ
(in T EUR )	Sha apit al re c	Cap ital rese rves	Oth eta ined er r ning ear s	IAS 39 rese rve	Act ial g ains / uar loss es	Cur cy t ren ran s latio n ad just ts men	Trea sha sury res	Tota l
BA LAN CE AS OF JA NU AR Y 1 , 20 16	104 ,00 0	36, 476	1,1 44, 880	48, 932	-70 ,53 4	2,8 52	-68 ,57 3	1,1 98, 033	17, 543	1,2 15, 576
Net inc om e			194 ,18 1					194 ,18 1	70	194 ,25 1
Oth hen sive inc er c om pre om e				2,3 35	-33 ,81 0	-3,4 84		-34 ,95 9	-37 4	-35 ,33 3
Tot al c hen siv e in om pre com e			194 ,18 1	2,3 35	-33 ,81 0	-3, 484		159 ,22 2	-30 4	158 ,91 8
Div ide nds			-13 7,8 02					-13 7,8 02	-60 1	-13 8,4 03
Cha s fr qui sitio nge om ac ns									1	1
Cha s in har tre nge asu ry s es			153				-9,8 97	-9,7 44		-9,7 44
Cha ing sha ptio nge s c onc ern re o n p rog ram s			2,4 02					2,4 02		2,4 02
Cha s in lida tion typ nge co nso e			120					120		120
STA TU S A S O F S EPT EM BE R 3 0, 2 016	104 ,00 0	36, 476	1,2 03, 934	267 51,	-10 4,3 44	-63 2	-78 0 ,47	1,2 12, 231	16, 639	1,2 28, 870
BA LAN CE AS OF JA NU AR Y 1 , 20 17	104 ,00 0	36, 476	1,2 87, 232	47, 685	-82 ,13 3	14, 416	-80 ,17 3	1,3 27, 503	16, 728	1,3 44, 231
Net inc om e			189 ,79 6					189 ,79 6	1,5 72	191 ,36 8
Oth hen sive inc er c om pre om e				-7,5 79		-54 ,56 4		-62 ,14 3	-91 8	-63 ,06 1
Tot al c hen siv e in om pre com e			189 ,79 6	-7, 579		-54 ,56 4		127 ,65 3	654	128 ,30 7
Div ide nds			-15 3,0 90					-15 3,0 90	-2,0 95	-15 5,1 85
Cha s fr qui sitio nge om ac ns
Cha s th h d lida tion nge rou g eco nso
Cap ital inc rea se
Cha s in har tre nge asu ry s es			172				-23 ,99 0	-23 ,81 8		-23 ,81 8
Cha ing sha ptio nge s c onc ern re o n p rog ram s			2,5 92					2,5 92		2,5 92
Tra ctio ith ntro lling int sts nsa ns w non -co ere			-4,0 15			-3,1 50		-7,1 65	6,3 46	-81 9
Cha s in lida tion typ nge co nso e			-1,1 47					-1,1 47	-7	-1,1 54
STA TU S A S O F S EPT EM BE R 3 0, 2 017	104 ,00 0	36, 476	1,3 21, 540	40, 106	-82 ,13 3	-43 ,29 8	-10 4,1 63	1,2 72, 528	21, 626	1,2 94, 154

STATEMENT BY THE EXECUTIVE BOARD

Statement by the Executive Board, pursuant to section 87 paragraph 1 of the (Austrian) Stock Exchange Act

We hereby confirm that, to the best of our knowledge, the condensed interim financial statements of the ANDRITZ GROUP drawn up in compliance with the applicable accounting standards provide a true and fair view of the asset, financial, and earnings positions of the ANDRITZ GROUP, and that the management report provides a true and fair view of the asset, financial, and earnings positions of the ANDRITZ GROUP with regard to the important events of the first nine months of the financial year and their impact on the condensed interim financial statements of the ANDRITZ GROUP, and with regard to the major risks and uncertainties during the remaining three months of the financial year, and also with regard to the major business transactions subject to disclosure and concluded with related persons and companies.

Graz, November 2017

The Executive Board of ANDRITZ AG

President and CEO PULP & PAPER

(Service & Units),

SEPARATION

Wolfgang Leitner Humbert Köfler Joachim Schönbeck Wolfgang Semper Mark von Laer PULP & PAPER (Capital Systems), METALS

HYDRO CFO

ANDRITZ financial report Q1-Q3 2017 Share

SHARE

RELATIVE PRICE PERFORMANCE OF THE ANDRITZ SHARE COMPARED TO THE ATX (OCTOBER 1, 2016 – SEPTEMBER 30, 2017)

Share price development

During the reporting period, the international financial markets were characterized by the continuing economic recovery in the world's main economic regions. Some international stock exchange indices in Europe and the USA reached record levels due to the good economic and earnings prospects for the listed companies. The ANDRITZ share price increased by 2.5% in the first three quarters of 2017. The ATX, the leading share index on the Vienna Stock Exchange, showed a significant increase of 26.6% in the same period due to the high weighting of bank shares and of an oil and gas Group. The highest closing price of the ANDRITZ share was EUR 54.87 (May 9, 2017), and the lowest closing price was EUR 44.32 (August 10, 2017).

Trading volume

The average daily trading volume of the ANDRITZ share (double count, as published by the Vienna Stock Exchange) was 302,782 shares in the first three quarters of 2017 (Q1-Q3 2016: 349,642 shares). The highest daily trading volume was noted on August 4, 2017 (1,544,140 shares), the lowest trading volume on January 2, 2017 (75,130 shares).

Treasury shares

In the first three quarters of 2017, a total of 510,000 treasury shares were bought back under the share buy-back program approved by the annual general meeting (details available at www.andritz.com).

Investor Relations

During the third quarter of 2017, meetings with institutional investors, private shareholders and financial analysts were held in Frankfurt, London, Munich, New York, Vienna, and Salzburg. At this year's ANDRITZ Capital Market Day, held in September in Graz, Austria, the Executive Board informed international analysts and fund managers on current developments and on the medium- to long-term goals of the ANDRITZ GROUP.

Key figures of the ANDRITZ share

	Unit	Q1-Q3 2017	Q1-Q3 2016	Q3 2017	Q3 2016	2016
Highest closing price	EUR	54.87	49.70	54.63	49.01	49.70
Lowest closing price	EUR	44.32	38.69	44.32	41.98	38.69
Closing price (as of end of period)	EUR	48.91	48.46	48.91	48.46	47.70
Market capitalization (as of end of period)	MEUR	5,086.1	5,039.3	5,086.1	5,039.3	4,960.3
Performance	%	+2.5	+7.6	-7.3	+14.1	+5.9
ATX weighting (as of end of period)	%	6.8867	9.9711	6.8867	9.9711	9.0018
Average daily number of shares traded	Share unit	302,782	349,642	330,346	251,648	317,558

Basic data of the ANDRITZ share

ISIN code	AT0000730007
First listing day	June 25, 2001
Types of shares no-par value shares, bearer shares
Total number of shares	104 million
Authorized capital	none
Free float	< 70%
Stock exchange	Vienna (Prime Market)
Ticker symbols	Reuters: ANDR.VI; Bloomberg: ANDR, AV
Stock exchange indices	ATX, ATX five, ATX Global Players, ATX Prime, WBI

Financial calender 2017 and 2018

November 3, 2017	Results for the first three quarters of 2017
March 2, 2018	Results for the 2017 business year
March 13, 2018	Record date Annual General Meeting
March 23, 2018	Annual General Meeting
March 27, 2018	Ex-dividend
March 28, 2018	Record date dividend
March 29, 2018	Dividend payment
May 3, 2018	Results for the first quarter of 2018
August 2, 2018	Results for the first half of 2018
November 6, 2018	Results for the first three quarters of 2018

The financial calendar with updates, as well as information on the ANDRITZ share, can be found on the Investor Relations page at the ANDRITZ web site: www.andritz.com/share.

ATX

Austrian Traded Index, the leading stock market index of the Vienna stock exchange.

GLOSSARY

ATX-weighting

Weighting of the ANDRITZ share according to the calculation of the Vienna stock exchange. This weighting is based on the market capitalization of public free float.

Average number of shares traded

Number of shares which are on average traded per day by using the double count method as published by the Vienna Stock Exchange.

Capital employed

Net working capital plus intangible assets and property, plant, and equipment.

Capital expenditure

Additions to intangible assets and property, plant and equipment.

Dividend per share

Part of earnings per share which is distributed to shareholders.

Earnings per share

Net income (without non-controlling interests)/weighted average number of no-par value shares.

EBIT

Earnings before interest and taxes.

EBITA

Earnings before interest, taxes, amortization of identifiable assets acquired in a business combination and recognized separately from goodwill and impairment of goodwill.

EBITDA

Earnings before interest, taxes, depreciation, and amortization.

EBT

Earnings before taxes.

Employees

Number of employees without apprentices.

Equity ratio

Total shareholders' equity/total assets.

Gearing

Net debt/total shareholders' equity.

HY

Business area HYDRO.

Liquid funds

Cash and cash equivalents plus marketable securities plus Schuldscheindarlehen.

Market capitalization

Number of shares outstanding multiplied by the closing price of the ANDRITZ share.

ME

Business area METALS.

MEUR

Million euros.

Net debt

Interest bearing liabilities including provisions for severance payments, pensions, and jubilee payments less cash and cash equivalents, marketable securities and Schuldscheindarlehen.

Net liquidity

Liquid funds plus fair value of interest rate swaps less financial liabilities.

Net working capital

Non-current receivables plus current assets (excluding marketable securities, cash and cash equivalents as well as Schuldscheindarlehen) less other non-current liabilities and current liabilities (excluding financial liabilities and provisions).

Order backlog

28

The order backlog consists of present customer orders at the balance sheet date. Basically it is calculated by the order backlog at the beginning of the period plus new order intake during the period less sales during the period.

Order intake

The order intake is the estimated order sales which have already been put into effect considering changes and corrections of the order value; letter of intents are not part of the order intake.

Payout ratio

Part of net income which is distributed to shareholders. It is calculated as dividend per share/ earnings per share.

Performance of the ANDRITZ share

Relative change of the ANDRITZ share within a certain time period

PP

Business area PULP & PAPER.

Return on sales

Earnings before interest and taxes/sales.

SE

Business area SEPARATION.

Sureties

These sureties contain bid bonds, contract performance guarantees, downpayment guarantees, as well as performance and warranty bonds at the expense of the ANDRITZ GROUP.

TEUR

Thousand euros.

Total shareholders' equity

Total shareholders' equity including non-controlling interests.

Contact and publisher's note

ANDRITZ AG Stattegger Strasse 18 8045 Graz, Austria investors@andritz.com Produced in-house using firesys

Disclaimer:

Certain statements contained in this report constitute 'forward-looking statements.' These statements, which contain the words "believe", "intend", "expect", and words of a similar meaning, reflect the Executive Board's beliefs and expectations and are subject to risks and uncertainties that may cause actual results to differ materially. As a result, readers are cautioned not to place undue reliance on such forward-looking statements. The company disclaims any obligation to publicly announce the result of any revisions to the forward-looking statements made herein, except where it would be required to do so under applicable law.