andritz financial report q1-q3 2015 · interim financial report for the first three quarters of...
TRANSCRIPT
Interim financial report for the first three quarters of 2015
Q1-Q3 2015
八百七十三萬四千〇七十二
二千六
九百八十三万 六千七百三
32,912,052,728.36
58,501
67,201
56,442.93
124,850,040,146.58
903,523,743.70
61,574.17323.27 8,032.43
500,000,000,000.0073,460,5281,037,603.28
92,473,027 6,549,648,407.30
99,832
4,605.74
83.19%246,875.76
2,332,204
1.90
124.89
646,875.32
2,016,442.94
352,332.24
12.44
902,814,842.9255,432.78
442,031,814.67
37.90646,875.32
746,545.14
455,765,533.26
288.54 2,877.33
5,288.508,877.24
4,278.208,877.24
7,288.58 5,877.32
488.60 1,770.46
488.60 1,770.46
21,789 6,754,348,085.23
9,674,856,953.20
35.89% 88,764.75
945,681.86
54.11 2,490.32
276,660.41
8,062.16
369,240 96.78%
40,979,167.77
6,164,345,646,220.33
51,997,240.13 3,257,984,442
1,642,450,423
416,549,648,407.30
630,885 2,735.23818,325,154.96
1,000,000,000
100,000,000
6,462,791,507.54 5,489.77 22.76%
458,123,866564,434,884.3524,850,300,146.47
60,146.47
775,670,014,842.21
69
505,674,014,811.21
705,674,284,814.54
95,674,014,811.21
1,002,274,014,551
2,402,274,014,536
602,274,014,735
425,275,314,797
900,232,074,759
554,239,071,909
53,243,921
53,243,921
820,773
7.73
990,510,423
234,986 6.48%
658,567.22
655,000,000,000,000
40,315,865.02
633.60
540.78
569.25
55.32%
30.68%
89.45%
9.41%
9.14%
29.74%
24.15
2.97
0.89
10.891.82
2.90
3.04
42,989,868.30
989,868.30
385,000,000
1,637%
3,865,250,722.45
2,865,250,722.47
12,052,728.37
9,212,052,728.37
9,212,052,728.37
457,946,029
65,763,000
100,000,000
754,980,024.75
2,756.44
6,750.413,258.25
42,700.49
65,891 23,657.76
743.87 100,000
643,853,967.68
864,552,899
821,316,549,648,400.74
416,549,648,407.30
465,062,073,134.62634,850,900,546.28
24,850,300,146.48124,850,040,146.58
944,850,440,146.36
644.63 92.54%
344.68 292.57%
234.60 32.04%
252.96 12.08%
644.63 92.54%
914,193,489.95
60,814,551
703,780,974.20
800,542,667
628.47 42.23
256,355.21 876,345,3554,655.08
4,650
7,637
742.44 813.97
4,655.02
3,100.48
3477,222.50
8,722.52
72.52
32.54
55,432.77
255,432.81
5,876.20
6,373.20
1,866%
87,633.28
97,633.22
44,543.00
635%
3,547 8,062
16.74%
43.74%
31.76%
8.87%
56.10%
6.19%8.25%
4.64%
83.19%
8,319
9,212
8,319.44
98.12%
48.24%
256.87
7.42
15,355
100
5.07
1,118,575.12
3,418,570.57
12,418,576.68
6,752,418,576.24
19,418,576.25
5,518,470.51
29,473,001
729,473,302
16.85% 1,755.42
32.80% 5,222.89
132.82 7,202.45
22.50% 9,672.53
77.50% 2,672.54
52.56% 3,222.36
49.82%4,262.31
86.20% 4,800.00
246,875.76 १,६४६,८७५.७७18,645
48,440
18,457
418,457
54,643
14,64724,673
53,675
13,422
73,620
73
62,880
55,812
85.81
6.77
8,812
5,134,346.77
542,331,810.22
5,882,131,865.43
842,031,814.37
22,502,204.91
232,502,234.64
82,332,204.80
2,332,204
2,332,204
४३२,२७८.५०
२२,४३२,२७८.५०
19,866.20
137,763,500
337,763,690
537,763,160
110.52
283.51
40.66
35,407.57
612,481.72
41,405.70
60,575,642.24246,875.76
100%99,832
69,831
99,832
3,832.12
7,837
837.22
15,665,255,720.67
7,212,852,628.32
54,126.05
26.08
9,360.253,634,347.42
52.81%746,875.79
22.80%82.32%146,875.29
15,238
35,238
6,218,572.85
23.952%
9%
18,575.12
541.42
1,541.44
4,441.65
24.15
50.35
0.53
85,432.40
38.64%24,543.04
24,351
49,473,084
82,031,214.30
831,214.11
731,614.23
582,031,214.80
3,412,052,724.30
82,052,724.67
23,412,052,724.30
523,412,052,724.87
2,512,052,471.60
3,512,452,471.67
4,412,052,524.39
189,473,811
899,387,210
100,000,000,000,000
4,878.30
36.17 2.7
9.9544,685,502,749.32
20,763,450.75
3,450.73
23,704.40
6,100.40
35,432.70
1,047%36.70%
4.70%
7.42
2,817.48
15,355
5.27
4.96
29,473,001
5,642,031,814.20
64,903,780,974.33
703,780,974.20
663,780,946.71
463,780,946.70
23,543.08
2,72255,432.771,866%
78,462.2032,865
78.05
1.74%
6.73%
2.3%
25,432.70
3.29%
52,332.20141.40
2,134,346.70
5,670,014,842.29
888.54 2,877.31
438.40
1,202.65
42.80% 5,222.84
488.60 1,770.46
72.52
102.45
90.1
5.88%
169
28.53% 7,672.54
8,812
2.73
5.1
3.29%140.56
72,432,287.452,852,628.38
635,902,014,842.99
34.18
55,432.77
2.77
9,062.5554,543.08
87.22%
29,473,053
65,891 53,657.70
4,850,300,146.4099,543.22
58.45
2.54%59,789 2,569.73
52,569.73
488.60 1,770.46
195,862 13,657.7792.42
8.87
49,534,576.43
42.85%
42.76% 62.57
65,622.5613,822.45
45.87
43.88%
68.12
2.85%
25,432.70
352,332.24462,122.10
723.29141.40
7,633.27
8,134,346.78
815,996,280,257,017
5,296,240,257,015
523,743.13
903,523,743.73
4,523,743.44
2,016,442.94
41,574.1458,374.19
42.80743.72
624,316,569,649,340.62
663,232,007,244.00684,850,040,146.22
12,052,524.39
6,278.97
33,704.48
5,835,432.70
89,473,051
4,842,031,814.80
344.68 292.57%
6,752,418,576.24
77.50% 2,672.54
44,685,502,749.32
90,685,202,745.56
80,386,202,641.78
3.29%
52,332.20
71.23
67,633.272,134,346.70
57,846,032.89
52,703.44
82,715.42
24.15
0.89
65,763,000
3,100.4855,432.77 37,633.28
73,693.25
44,543.00
44,543.00
16.74%
7.42
79,473,024
5,134,346.77
32,231,814.60 95,674,014,811.21
644.63 92.54%
13,42236.70%
15,355
2.3%4.31%
72,524
7
19,418,576.25
91,618,576.87
28,418,576.22
1,214.113.86
6.22%
52,332.20
141.4067,633.27
2,134,346.70
60,146.47
142.76 562.57
23.28%
723.29
236.84
1,447,633.20
903,523,743.73
41,574.14
3,743.72
5,288.508,877.24
6,208.522,477.67
6.75
37.909.41%
4.64%
5,31699,832
2%
1,541.44
488.576,877.38
62.34% 3,262.82
5.88%2.73
3.29%140.56
53,243,921
92.4128.53% 7,672.54
8,812.71
62,332.67
488.60 1,770.46
4,878.30
6,878.35
29,473,001
32,652,814,844.23
455,432.722,442,031,814.48
2,442,031,814.48
8,319.44
537.26
452,852,628.38
167,852,601.00
5.21
13%
45,902,014,842.90
2,745,652,014,648.87
14.33
852,600.81
7,062.58
4,543.11
87.22%
1.22%
15,355
39,473,064
65,891 53,657.70
4,850,300,146.40
89,543.20
58.45
२०,३७४,८८४.९५15
46.34
128,753,872,143.30 12,569.814.65
56,434,847.10
104.20%
4.23 5,633.20
431,023,040.74
७,६३०,२०३,६२७
8,962,691,707.242,728.3926,432.80
54,637.212,805.86
७६,८७५.४१
७६,८७५.४१
८७८,६७४,२८४,२१६.४८
四百六十九
四百五十二
二十億 三千六百五十二万 千八百一
五〇・〇四
十七
二千六
九萬七千三百七十五
二百〇五
九萬七千三百七十五
一千〇五萬〇二十六
兩千三百六十二
二百〇五
百分之二十五一千〇五萬〇二十六
兩千三百六十二
4,574.12
8,100.4223%
33,704.48
8,278,565488,776
3,278.91
32.80%
6,421.82
42.80
55,432.77
1,866%
4,878.304,810,8424,432.78
31,214.65
2,852,628.38
5.86%
25.87
3,641.40100,000
63,743.87
643,853,967.68
22.32
६,७३०,२३३.१२
五〇・〇四
४,१६६,८७५.४७
一千〇五萬〇二十六
兩千三百六十二
二千六
十七
五〇・〇四
३३५,६७८,२८४,२१६.१७
७१८,५७१.४७
12.44
663,780,946.71
2,016,442.94
54
643,853,967.68
9,212,052,728.37
13,512,052,724.43
1,073,134.62
29,324
765.58
40,146.45
976,549,648,407.44
6
5%
9.7
87.1
14.05
841
4387.51
3.08
407
21
678.06311.51
2.1%
3.27%
35,432.70
40,146.45
40,146.45
63.80%
644.63 2.54%
8,562
78,781.03 4,775.26
6,700.24 2,375.61
82,715.42
55,432.771,866%
12,052,728.37
12,052,728.37
36,052,728.88
3,780,974.20
4,878.30
446,876.45
4,810,842
2.76
58.45
55,432.78
55,432.7731,814.67
5,614.21
2,852,628.38
43.69
54,543.08
258,442.63
31,479,965.02
31,834.54
76,102,600
1,618,754.8716,849,648,407.63
33,960.56
60,146.47
44.85%
563,523,741.4267,633.27
2,016,442.94
6,217
5,075,324.24
34,718,571.47
32,912,052,728.36
58,501
56,442.93
4,574.12
703,780,974.20663,232,007,244.00
124,850,040,146.5835,432.70
8,032.43
500,000,000,000.0023,560,528.21
1,037,603.28
34,475,153
6,549,648,407.30
23.95
7.93%
810.67
21,789 6,754,348,085.23
6,155,630.25
58,542,767.00
9,674,856,953.20
35.89% 88,764.75
894,705,612.76 950,560,103
54.11 2,490.32
9,256,460.87
60,813.72
212,533,900.46
35.32
200 53.31
230,740.63
4,891,730,023.54
3,965.34
439,450
3,675,324.328,305,324.14
40,979,167.77
359,011.64
34,986,540,270.71
635,864,543,270.786,164,345,646,220.33
3,264,540,740,420.28
64,005,541,347,220.3351,997,240.13 3,257,984,442
86,002,673
1,642,450,423
416,549,648,407.30
8,416,549,648,407.30
23,416,549,648,407.41
7,556,549,648,347.44
48,455.27
4,754.32
26,431,675,354.22
630,885 2,735.23
1,000,000.0089,180,311.52
818,325,154.96
65,987,323.6815,490,125.62
65,322 5.08%
6,462,791,507.54
376,139,901.56
494,811,021,043.87
4,106.93
544,006.98
543,640
2,533,445,409.85
8,320,775,040.71
11,345 5,651.76
32.87 87,629
425,275,314,797
1,676,278.658,602,274,014,735.45
572,444,016,735.64
602,417,016,802.45
437%
54,902,052,724.55
54,902,052,724.55
36.58
3,628.47 542.23४,१६६,८७५.४७
18,457.47
5,296,240,257,015
523,743.134,523,743.4458,374.19
5,835,432.70
72.52
2.55
6,752,418,576.24
831,214.112.81%
7.84%
5.15%
8.15%
2.19%
100%
4.67
11.80%
44,685,502,749.32
85,442,145.56
43,581,202,749.30
142,641.86
671.40
57,846,032.89
52,703.44
82,715.42
3,100.48
8,100.42
6,632.77
338%
23.75%
2,078.12
32,231,814.744.31%
2.82%
4,372.54
91,618,576.87
24,618,576.80
691,618,576.84
78,416,576.7542,877.33
4,143.40
53.20%
543.46
100%
4,412,052,524.39
2,652,052,520.10
8,111,052,524.55
4,878.30
478.75
23,704.4029,473,001 2,172,031,864.80
503,710,974.28
73,711,442.85
54,850,040,146.20
12,052,524.39
33,704.48
89,473,051
14,842,032,814.52
56,994,127,200.10
8,278,565488,776
478,5153,881.70
77,228,565.67481,067,454
3,278.91
4.20%
32,332.55540.25
4.25%640.24
32.80% 6,421.82
2,921.8022.81%
180,146.47
352,332.24
640,524,643.49
42.80
703.75
6
703.75
703.75
463.70
433.72
442,031,814.67
8,319.4482,628.38
155,912,314,842.65
39.02
25,432.124,463.55
74,544.21
66.35%
50.37%
15,355.48
15,230.0829,473,053
667,778,235.24
6,812,814,540.92
32,652,814,844.23
2,442,031,814.48
129.76
452,852,628.38
8,061
2,745,652,014,648.87
87.22%27.86%
9,473,541
२०.३७४.८८४,९५
46.34
69.81
5.86%
4.65684,434,847.34
104.20%
4.23 5,633.20
5,682.40
883,523,943.12
431,023,040.74
631,900 46.48%
6,930.32 340.76
36.8227,730,287.54
६,७३०,२३३.१२
42
8,962,691,707.24
82,715.4237.90
5.64%
8,562
99,832
67,337.70
2,541.40 92.34% 4,562.82
7,426,436.23
3.2%
2.6%52,332.20
4,658,404.21124,850,040,146.58
4,412,052,524.39
4,878.30
23,704.4035,432.70
29,473,0015,642,031,814.20
703,780,974.20
902,814,842.92
55,432.78
65,891
53,657.70
4,850,300,146.40
99,543.22
58.45
59,789
646,875.32
9.41%
4.64%
83.57
44.21
27
99,832
3,877
1,541.44
888.54 2,877.31
65.88% 8,396.43
8,217,646,224.64
34,922,047.903
2,429.374.34
521,670,014,840.76
41,270,514,840.98
84,534,576.49
43,766,223.40
820.21
41,574.14
16,078.21
3,743.72
8,319.44
272.91
272.91
6,463.40
87.22%
25,640
39,470,684
65,891 53,657.70
25.87
37.90
29,324
75,337.17
3,641.40
12.74% 6,562.82
52,274,014,610
100,000 63,743.87
643,853,967.68
634.34 52.74%
4,650
29.82%3,262.31
13,422
2,523,524.14
36.17
6,100.40
1,04715,355
459,473,505
14,842.35
2.36
52.89
24.81%
50,146.5848,440 273,620
273,620
763,450.75
463,420.66
504.44
5.86
22,031,814.66
263,780,946.78
5,288.508,877.24
27.09%754,980,024.75
914,193,489.95
418,576.68
6,752,418,576.24
232,502,234.64
46,875.79
82.32%
731,614.23
582,031,214.80
82,052,724.16
23,412,052,724.30
2,512,052,471.60
87,210
14,685
85,502,749.32
5,670,014,842.29
63.80%12,052,728.37
37.90
1,047
2,047
15,355
4,878.30
19,371
75,337.17
12.74% 6,562.82
4,878.3029,324
643,853,967.68
34,475,153
36,002,673.57
65,322 5.08%
43,581,202,749.30
3
12,548,211.34
27.86%
875.32
65.88% 8,396.43
272.915,640
15,670
95,674,014,811.21
6,302,274,014,551.08
9,212,052,728.37
743.87 100,000
416,549,648,407.30
44.63 92.54%
9.86% 62.31
48,440
4,412,052,524.39
20,763,450.75
23,704.40
35,432.70
6.70%
4,473,684
31,814.20
5,642,031
703,780,974.20
5,432.771,866%
72.36
3,422
36,052,728.88
4,878.30
876.42
43.69
29,324
29.82% 262.33
2,523,524.14
6,100.40
58,501
1,642,450,423
630,885 2,735.23
32,652,814,844.23
812,347.6454.07%531,023,040.74
7,236,549,648,472.45
3,780,946.78
58,501
54.11 2,490.32
25,154.963,743.13
56,434,847.10
8,962,691,707.24
2,728.39
5
65,000
26,432.80
34,718,571.47
86,002,673
65,322 5.08%
43,581,202,749.3012,548,211.34
37.84%646,875.32
65.88% 8,396.43
36,052,728.88
878.30
876.45
96.126,325
643,853,967.68
59.72% 262.37
5,223,524.42
352,332.24
418,457
658,450
0.89
65,763,00044,543.00
44,543.00
7.42
5,134,346.77
644.63 92.54%
13,422
15,355
1,214.11
67,633.27
2,134,346.70
60,146.47
23.28%
723.29
1,447,633.20
903,523,743.73
41,574.14
3,743.72
834,674,014,811.21
95,674,014,811.21 743.87 100,000
416,549,648,407.30
834,850,000,146.9574,850,440,146.36
644.63 92.54%
234.60 32.04%
644.63 92.54%
4,65048.24%
13,422
173,620437,502,348.80
22.80%146,875.29
15,238
36.17
20,763,450.75
9,300.40
32,092
1,047%
36.70%
7.42
15,355
5.27
64,903,780,974.33
55,432.77
1,866%
2.3%
352,332.24
915,422,679.32
52,703.44
4,655.02 2,255,432.81
97,633.22
2,402,274,014,536
2,989,862.30
6,800,542,667
1.76%
18,457
14,647
42,392
4,316
32,274,014,735
6,052,728.37231,814.65
882,814,842.92
55,432.78
442,031,814.67
6,554,239,071,909.23
8,319.44
837.22
26.54
28.53% 7,672.54
8,812
62,332.67
2,852,628.38
85,902,014,842.491,434.18
234.18 54,543.0887.22%
15,355 65,891 53,657.70
4,850,300,146.40
99,543.22
4.47
369.73
99%
35,750,652,146.4583.19%246,875.76
100
99,832
9,062.55
四百五十二
九百八十三万 六千七百三
四百六十九
७८,६७४,२८४,२१६
四百六十九
二十億 三千六百五十二万 千八百一
823,446.65
一千〇五萬〇二十六
二百〇五
七十五點四〇二五
九萬七千三百七十五
兩千三百六十二
八百七十三萬四千〇七十二
一千〇五萬〇二十六
一千〇五萬〇二十六
Annual and financial reports The annual reports and financial reports are available for download at www.andritz.com. Printed copies can be requested free of charge by e-mail to [email protected]. ANDRITZ AGStattegger Strasse 188045 Graz, [email protected] Produced in-house using FIRE.sys
01 Contents
Key financial figures of the ANDRITZ GROUP 02
Key financial figures of the business areas 03
Management report 04
Business areas 11 HYDRO 11
PULP & PAPER 13
METALS 14
SEPARATION 15
Consolidated financial statements of the ANDRITZ GROUP 16 Consolidated income statement 16
Consolidated statement of comprehensive income 17
Consolidated statement of financial position 18
Consolidated statement of changes in equity 19
Consolidated statement of cash flows 20
Cash flows from acquisitions of subsidiaries 20
Notes 21
Declaration pursuant to article 87 (1) of the (Austrian) Stock Exchange Act 25
Share 26
02 Key financial figures of the ANDRITZ GROUP
Unit Q1-Q3
2015
Q1-Q3
2014 +/- Q3 2015 Q3 2014 +/- 2014
Order intake MEUR 3,767.6 4,571.6 -17.6% 1,187.6 1,591.5 -25.4% 6,101.0
Order backlog
(as of end of period) MEUR 6,891.8 7,702.2 -10.5% 6,891.8 7,702.2 -10.5% 7,510.6
Sales MEUR 4,589.1 4,122.9 +11.3% 1,583.5 1,463.5 +8.2% 5,859.3
Return on sales1) % 5.6 4.3 - 6.3 5.6 - 5.0
EBITDA2) MEUR 364.1 298.9 +21.8% 133.2 123.2 +8.1% 472.0
EBITA3) MEUR 295.0 234.4 +25.9% 110.1 101.0 +9.0% 379.5
Earnings Before Interest and
Taxes (EBIT) MEUR 259.1 176.0 +47.2% 99.5 81.6 +21.9% 295.7
Earnings Before Taxes (EBT) MEUR 263.1 174.3 +50.9% 96.7 81.6 +18.5% 299.4
Net income (including non-
controlling interests) MEUR 183.5 122.0 +50.4% 67.6 57.1 +18.4% 210.0
Net income (without non-
controlling interests) MEUR 181.3 123.6 +46.7% 67.4 56.9 +18.5% 210.9
Cash flow from operating
activities MEUR 132.8 225.6 -41.1% 140.6 176.6 -20.4% 342.1
Capital expenditure4) MEUR 59.7 61.9 -3.6% 23.4 27.4 -14.6% 106.5
Employees (as of end of period;
without apprentices) - 24,769 24,468 +1.2% 24,769 24,468 +1.2% 24,853
Fixed assets MEUR 1,806.1 1,761.7 +2.5% 1,806.1 1,761.7 +2.5% 1,780.0
Current assets MEUR 3,883.0 4,166.0 -6.8% 3,883.0 4,166.0 -6.8% 4,187.6
Total shareholders’ equity5) MEUR 1,078.4 1,002.4 +7.6% 1,078.4 1,002.4 +7.6% 1,014.8
Provisions MEUR 1,056.1 937.6 +12.6% 1,056.1 937.6 +12.6% 1,056.2
Liabilities MEUR 3,554.6 3,987.7 -10.9% 3,554.6 3,987.7 -10.9% 3,896.6
Total assets MEUR 5,689.1 5,927.7 -4.0% 5,689.1 5,927.7 -4.0% 5,967.6
Equity ratio6) % 19.0 16.9 - 19.0 16.9 - 17.0
Return on equity7) % 24.4 17.4 - 9.0 8.1 - 29.5
Return on investment8) % 4.6 3.0 - 1.7 1.4 - 5.0
Liquid funds9) MEUR 1,367.1 1,666.6 -18.0% 1,367.1 1,666.6 -18.0% 1,701.6
Net liquidity10) MEUR 930.3 1,013.8 -8.2% 930.3 1,013.8 -8.2% 1,065.1
Net debt11) MEUR -524.1 -691.2 +24.2% -524.1 -691.2 +24.2% -659.4
Net working capital12) MEUR -354.1 -607.0 +41.7% -354.1 -607.0 +41.7% -570.9
Capital employed13) MEUR 575.1 333.1 +72.7% 575.1 333.1 +72.7% 387.0
Gearing14) % -48.6 -69.0 +29.6% -48.6 -69.0 +29.6% -65.0
EBITDA margin % 7.9 7.2 - 8.4 8.4 - 8.1
EBITA margin % 6.4 5.7 - 7.0 6.9 - 6.5
EBIT margin % 5.6 4.3 - 6.3 5.6 - 5.0
Net income15)/sales % 4.0 3.0 - 4.3 3.9 - 3.6
Depreciation and
amortization/sales % 2.2 3.0 - 2.1 2.8 - 2.9
1) EBIT (Earnings Before Interest and Taxes)/sales 2) Earnings Before Interest, Taxes, Depreciation, and Amortization 3) Earnings Before
Interest, Taxes, Amortization of identifiable assets acquired in a business combination and recognized separately from goodwill at the amount of
33,952 TEUR (58,406 TEUR for Q1-Q3 2014, 78,038 TEUR for 2014) and impairment of goodwill at the amount of 1,955 TEUR (0 TEUR for
Q1-Q3 2014, 5,747 TEUR for 2014) 4) Additions to intangible assets and property, plant, and equipment 5) Total shareholders’ equity incl.
non-controlling interests 6) Shareholders’ equity/total assets 7) EBT (Earnings Before Taxes)/shareholders’ equity 8) EBIT (Earnings Before
Interest and Taxes)/total assets 9) Cash and cash equivalents plus marketable securities plus loans against borrowers’ notes 10) Liquid funds
plus fair value of interest rate swaps minus financial liabilities 11) Interest bearing liabilities including provisions for severance payments,
pensions, and jubilee payments minus cash and cash equivalents, marketable securities and loans against borrowers’ notes 12) Non-current
receivables plus current assets (excluding cash and cash equivalents as well as marketable securities and loans against borrowers’ notes) minus
other non-current liabilities and current liabilities (excluding financial liabilities and provisions) 13) Net working capital plus intangible assets
and property, plant, and equipment 14) Net debt/total shareholders’ equity 15) Net income (including non-controlling interests)
All figures according to IFRS. Due to the utilization of automatic calculation programs, differences can arise in the addition of rounded totals and
percentages. MEUR = million euros. TEUR = thousand euros.
KEY FINANCIAL FIGURESOF THE ANDRITZ GROUP
03 Key financial figures of the business areas
HYDRO
Unit Q1-Q3
2015
Q1-Q3
2014 +/- Q3 2015 Q3 2014 +/- 2014
Order intake MEUR 1,122.0 1,166.0 -3.8% 327.3 351.4 -6.9% 1,816.7
Order backlog
(as of end of period) MEUR 3,585.8 3,575.5 +0.3% 3,585.8 3,575.5 +0.3% 3,708.6
Sales MEUR 1,309.6 1,232.2 +6.3% 443.3 426.8 +3.9% 1,752.3
EBITDA MEUR 116.1 114.5 +1.4% 42.3 42.8 -1.2% 177.2
EBITDA margin % 8.9 9.3 - 9.5 10.0 - 10.1
EBITA MEUR 91.6 91.7 -0.1% 33.6 34.9 -3.7% 144.8
EBITA margin % 7.0 7.4 - 7.6 8.2 - 8.3
Employees (as of end of
period; without apprentices) - 8,474 8,080 +4.9% 8,474 8,080 +4.9% 8,339
PULP & PAPER
Unit Q1-Q3
2015
Q1-Q3
2014 +/- Q3 2015 Q3 2014 +/- 2014
Order intake MEUR 1,255.7 1,629.6 -22.9% 346.8 572.4 -39.4% 1,995.7
Order backlog
(as of end of period) MEUR 1,609.6 2,101.7 -23.4% 1,609.6 2,101.7 -23.4% 1,875.4
Sales MEUR 1,586.4 1,369.9 +15.8% 542.5 500.6 +8.4% 1,969.3
EBITDA MEUR 167.4 85.5 +95.8% 85.7 35.7 +140.1% 127.6
EBITDA margin % 10.6 6.2 - 15.8 7.1 - 6.5
EBITA MEUR 149.5 66.9 +123.5% 79.6 29.1 +173.5% 102.9
EBITA margin % 9.4 4.9 - 14.7 5.8 - 5.2
Employees (as of end of
period; without apprentices) - 7,226 7,340 -1.6% 7,226 7,340 -1.6% 7,236
METALS
Unit Q1-Q3
2015
Q1-Q3
2014 +/- Q3 2015 Q3 2014 +/- 2014
Order intake MEUR 953.8 1,328.1 -28.2% 358.4 530.2 -32.4% 1,692.8
Order backlog
(as of end of period) MEUR 1,326.9 1,631.4 -18.7% 1,326.9 1,631.4 -18.7% 1,566.1
Sales MEUR 1,239.8 1,111.8 +11.5% 443.7 389.5 +13.9% 1,550.4
EBITDA MEUR 58.2 87.0 -33.1% -2.2 36.8 -106.0% 134.0
EBITDA margin % 4.7 7.8 - -0.5 9.4 - 8.6
EBITA MEUR 38.3 69.8 -45.1% -8.9 31.1 -128.6% 110.2
EBITA margin % 3.1 6.3 - -2.0 8.0 - 7.1
Employees (as of end of
period; without apprentices) - 6,272 6,202 +1.1% 6,272 6,202 +1.1% 6,432
SEPARATION
Unit Q1-Q3
2015
Q1-Q3
2014 +/- Q3 2015 Q3 2014 +/- 2014
Order intake MEUR 436.1 447.9 -2.6% 155.1 137.5 +12.8% 595.8
Order backlog
(as of end of period) MEUR 369.5 393.6 -6.1% 369.5 393.6 -6.1% 360.5
Sales MEUR 453.3 409.0 +10.8% 154.0 146.6 +5.0% 587.3
EBITDA MEUR 22.4 11.9 +88.2% 7.4 7.9 -6.3% 33.2
EBITDA margin % 4.9 2.9 - 4.8 5.4 - 5.7
EBITA MEUR 15.6 6.0 +160.0% 5.8 5.9 -1.7% 21.6
EBITA margin % 3.4 1.5 - 3.8 4.0 - 3.7
Employees (as of end of
period; without apprentices) - 2,797 2,846 -1.7% 2,797 2,846 -1.7% 2,846
KEY FINANCIAL FIGURESOF THE BUSINESS AREAS
04 Management report
GENERAL ECONOMIC CONDITIONS The economies of the world’s main regions saw mixed development in the third quarter of 2015. In the USA, the economy continued to recover. Private consumption, which accounts for the largest portion of economic
performance in the USA, continued its positive development. This led to a further increase in employment. Thus,
the unemployment rate decreased to approximately 5%, the lowest level in seven years. The US Federal Reserve (FED) announced that the key interest rate will remain unchanged at its record low level of 0 to
0.25 percent, but also hinted at a turnaround in interest rates before the end of this year. According to the FED,
the extent of an increase in the key interest rate will depend on the inflation forecast and the economic development in the emerging markets in Brazil and China.
In contrast, economic growth continued to be moderate in Europe. A negative impact was felt due to the current mutual trade embargo between Russia and the European Union as well as the general economic weakness in
the emerging markets, which resulted in less demand for export goods in spite of the weak euro. The European
Central Bank announced that the key interest rate will remain unchanged at its record low of 0.05 percent in the euro zone to combat the weakening economy and the too low inflation rate. This should boost investments and
consumption.
Growth in the most important emerging markets continued to slow down during the reporting period. China is
undergoing the transition from an industrial to a consumer society. The national investment programs in the past
few years have resulted in massive overcapacities in many industries that could not be fully compensated by the export economy, which is suffering from the global economic weakness, and by domestic demand. Brazil has
also been battling against a severe economic crisis for many months now. The economy, which is strongly
oriented towards exporting of raw materials, is suffering under the low prices for these goods, which has led to increasing unemployment and thus declining domestic consumption. In addition to Western sanctions, Russia is
also struggling with the low oil price and, like Brazil, is undergoing a recession because of the sharp drop in raw
material prices and due to currency fluctuations.
Sources: research reports by various banks, OECD
BUSINESS DEVELOPMENT Notes
All figures according to IFRS Due to the utilization of automatic calculation programs, differences can arise in the addition of rounded totals
and percentages.
MEUR = million euro; TEUR = thousand euro
Sales
In the third quarter of 2015, sales of the ANDRITZ GROUP amounted to 1,583.5 MEUR and were thus 8.2% higher than the figure in the third quarter of 2014 (1,463.5 MEUR). All four business areas were able to increase
their sales compared to the previous year: HYDRO +3.9% to 443.3 MEUR, PULP & PAPER +8.4% to
542.5 MEUR, METALS +13.9% to 443.7 MEUR, and SEPARATION +5.0% to 154.0 MEUR.
In the first three quarters 2015, Group sales rose by 11.3% to 4,589.1 MEUR compared to last yearʼs reference
period (Q1-Q3 2014: 4,122.9 MEUR). As in the third quarter of 2015, all business areas noted an increase in sales:
Unit Q1-Q3 2015 Q1-Q3 2014 +/-
HYDRO MEUR 1,309.6 1,232.2 +6.3%
PULP & PAPER MEUR 1,586.4 1,369.9 +15.8%
METALS MEUR 1,239.8 1,111.8 +11.5%
SEPARATION MEUR 453.3 409.0 +10.8%b
MANAGEMENT REPORT
05 Management report
Share of service sales of Group and business area sales in %
Q1-Q3 2015 Q1-Q3 2014 Q3 2015 Q3 2014
ANDRITZ GROUP 29 29 30 29
HYDRO 25 25 25 28
PULP & PAPER 36 36 37 34
METALS 19 18 19 17
SEPARATION 44 43 45 42
Order intake The Groupʼs order intake in the third quarter of 2015, at 1,187.6 MEUR, was 25.4% below the high figure for the
previous yearʼs reference period (Q3 2014: 1,591.5 MEUR): The business areasʼ order intake developed as follows:
HYDRO: At 327.3 MEUR, order intake was 6.9% lower than in the third quarter of 2014 (351.4 MEUR), but
still reached an acceptable level in view of the unchanged difficult market environment. Order intake in the PULP & PAPER business area amounted to 346.8 MEUR – a decline of 39.4% compared
to the previous yearʼs high level (Q3 2014: 572.4 MEUR), which included some large orders for boiler plants
(including Zellstoff Pöls, Austria, and OKI Pulp & Paper Mills, Indonesia). METALS: The order intake reached 358.4 MEUR and thus was also significantly lower than the figure for last
yearʼs reference period (-32.4% versus Q3 2014: 530.2 MEUR), when several large orders in the metal
forming sector (including an order from FAW-Volkswagen Automotive, China) and for aluminum strip processing lines were booked.
Order intake in the SEPARATION business area increased by 12.8% to 155.1 MEUR (Q3 2014: 137.5 MEUR).
In connection with the decline in order intake in the third quarter of 2015, it has to be mentioned that the large
order awarded to ANDRITZ by Fibria in July 2015 to supply equipment for the new Horizonte 2 pulp mill in Brazil
was booked in the fourth quarter of 2015; typical order values of comparable projects are about 600 MEUR. In addition, the large order received in the first quarter of 2015 to deliver the electromechanical equipment for the
worldʼs first tidal lagoon hydropower project in Wales will not be booked before the end of the first half of 2016.
In the first three quarters of 2015, the order intake of the ANDRITZ GROUP, at 3,767.6 MEUR, was 17.6% below
the previous year’s reference figure (Q1-Q3 2014: 4,571.6 MEUR). This is attributable primarily to the METALS
and PULP & PAPER business areas. The Schuler Group, which is allocated to the METALS business area, saw a significant decline in order intake,
which fell to 653.3 MEUR (-28.7% versus Q1-Q3 2014: 916.3 MEUR) due to postponed projects in the metal
forming sector for the automotive and automotive supplier industries. In the PULP & PAPER business area, order intake dropped to 1,255.7 MEUR (-22.9% versus Q1-Q3 2014:
1,629.6 MEUR).
41 (41)
18 (17)
14 (15)
12 (14)
11 (10)
4 (3)
Europe
North America
South America
China
Asia (withoutChina)
Others
Sales by region Q1-Q3 2015(Q1-Q3 2014) in %
28 (30)
35 (33)
27 (27)
10 (10)
HYDRO
PULP & PAPER
METALS
SEPARATION
Sales by businessarea Q1-Q3 2015(Q1-Q3 2014) in %
06 Management report
Order backlog As of September 30, 2015, the order backlog of the ANDRITZ GROUP amounted to 6,891.8 MEUR and thus
slightly decreased by 8.2% compared to the end of last year (December 31, 2014: 7,510.6 MEUR).
Earnings The earnings of the ANDRITZ GROUP developed favorably. The EBITA amounted to 110.1 MEUR in the third
quarter of 2015 and was thus 9.0% higher than the figure for the previous yearʼs reference period (Q3 2014:
101.0 MEUR). The EBITA margin amounted to 7.0% (Q3 2014: 6.9%). As announced at the end of August 2015, around 55 MEUR of financial provisions were booked for optimization of the value chain at Schuler. These
provisions were partly offset by project-related one-off improvements in the amount of approximately 30 MEUR
in the PULP & PAPER business area. After adjustment of these extraordinary effects, the Groupʼs EBITA amounted to 135.1 MEUR and the EBITA margin to 8.5% in the third quarter of 2015.
Profitability in the business areas developed as follows: The EBITA margin in the HYDRO business area dropped compared to the previous year from 8.2% to 7.6%,
but still achieved a satisfactory level.
In the PULP & PAPER business area, the EBITA margin increased significantly to 14.7% due to the one-off improvements mentioned above (Q3 2014: 5.8%). However, the EBITA margin excluding this extraordinary
effect still achieved a very favorable level at 9.1%.
In the METALS business area, the EBITA margin fell to -2.0% (Q3 2014: 8.0%) due to the financial provisions to optimize the value chain at Schuler. Excluding these restructuring expenses, the EBITA margin showed
a substantial increase to 10.4%.
41 (38)
22 (19)
12 (14)
12 (9)
10 (15)3 (5)
Europe
North America
China
Asia (withoutChina)
South America
Others
Order intake byregion Q1-Q3 2015(Q1-Q3 2014) in %
30 (25)
33 (36)
25 (29)
12 (10)
HYDRO
PULP & PAPER
METALS
SEPARATION
Order intake bybusiness area
Q1-Q3 2015 (Q1-Q3 2014)in %
34 (33)
19 (16)
18 (18)
11 (15)
11 (10)
7 (8)
Europe
North America
Asia (withoutChina)
South America
China
Others
Order backlog byregion as of
September 30, 2015(December 31, 2014)
in %53 (49)
23 (25)
19 (21)
5 (5)
HYDRO
PULP & PAPER
METALS
SEPARATION
Order backlog bybusiness area as of
September 30, 2015(December 31, 2014)
in %
07 Management report
In the SEPARATION business area, the EBITA margin amounted to 3.8%, thus remaining at an unsatisfactory
level (Q3 2014: 4.0%).
The earnings of the Group also increased substantially in the first three quarters 2015. At 295.0 MEUR, the
EBITA was 25.9% higher than the figure for the previous yearʼs reference period (Q1-Q3 2014: 234.4 MEUR), while the EBITA margin amounted to 6.4% (Q1-Q3 2014: 5.7%). Excluding the extraordinary effects booked in
the third quarter of 2015, the EBITA increased to 320.0 MEUR and the EBITA margin to 7.0%.
The financial result in the first three quarters improved to 4.0 MEUR (Q1-Q3 2014: -1.7 MEUR). This positive
development is mainly due to the higher average net liquidity compared to the previous year and a one-off effect
on interest in connection with settlement payments received from a customer.
Net income (without non-controlling interests) in the first three quarters reached 181.3 MEUR (Q1-Q3 2014:
123.6 MEUR).
Net worth position and capital structure
The net worth position and capital structure as of September 30, 2015 remained solid. Total assets amounted to 5,689.1 MEUR (December 31, 2014: 5,967.6 MEUR). The equity ratio reached 19.0% (December 31, 2014:
17.0%).
Liquid funds (cash and cash equivalents plus marketable securities plus loans against borrowers’ notes)
amounted to 1,367.1 MEUR (December 31, 2014: 1,701.6 MEUR), net liquidity (liquid funds plus fair value of
interest rate swaps minus financial liabilities) amounted to 930.3 MEUR (December 31, 2014: 1,065.1 MEUR).
In addition to the high net liquidity, the ANDRITZ GROUP also has the following credit and surety lines for
performance of contracts, down payments, guarantees, etc., at its disposal: Credit lines: 366 MEUR, thereof 74 MEUR utilized
Surety and guarantee lines: 5,747 MEUR, thereof 2,888 MEUR utilized
Employees As of September 30, 2015, the number of ANDRITZ GROUP employees amounted to 24,769 (December 31,
2014: 24,853 employees).
Long-termassets: 33%
Short-termassets: 45%
Cash and cash equivalentsand marketable securities: 22%
Shareholders’equity incl. minorityinterests: 19%
Financialliabilities:8%
Otherlong-termliabilities: 15%
Other short-termliabilities: 58%
1,078.4MEUR
454.5MEUR
834.2MEUR
3,322.0MEUR
1,886.2MEUR
2,525.8MEUR
1,277.1MEUR
Assets
Shareholders’ equity and liabilities
58 (60)
16 (14)
11 (11)
9 (9)
6 (5) 0 (1)
Europe
South America
North America
China
Asia (withoutChina)
Others
Employees by regionas of September 30, 2015(December 31, 2014) in %
08 Management report
Major risks during the remaining months of the financial year and risk management
The ANDRITZ GROUP has implemented a Group-wide risk management system whose goal is to identify nascent risks at an early stage and take countermeasures if necessary. This is an important element of active
risk management within the Group. However, there is no guarantee that these monitoring and risk control
systems are effective enough.
The essential risks for the business development of the ANDRITZ GROUP relate above all to the Group’s
dependence on the general economic environment and the development of the industries it serves, to whether major orders are received and to the risks they entail; and to whether adequate sales proceeds are realized from
the high order backlog. Furthermore, unexpected cost increases during the execution of orders constitute a
considerable risk, particularly in so-called turnkey or EPC orders, where the Group may assume responsibility for engineering, civil work, and erection of a factory in addition to delivery of ANDRITZ equipment and systems.
Projects of this kind involve high risks concerning cooperation with third parties contracted to carry out
engineering, as well as civil and construction work (for example the risk of strikes, failure to meet deadlines, or quality problems with components/services purchased from sub-suppliers). Delays and difficulties in achieving
the guaranteed performance parameters in the plants that ANDRITZ supplies as well as a possible malfunction
in the components and systems supplied by ANDRITZ that can have serious consequences for individuals and on material assets also pose substantial risks.
The financial difficulties and the continuously challenging overall economic development (particularly in Europe and individual emerging markets, mainly in Brazil, Russia, and China) also constitute a serious risk for the
ANDRITZ GROUP’s financial development. A significant weakness of the global economy or a considerable
slowdown of the economy in one of the main economic regions may lead to delays in the execution of existing orders and to the postponement or cancellation of ongoing projects. Cancellations of existing contracts could
adversely affect the ANDRITZ GROUP’s order backlog, which in turn would have a negative impact on the
utilization of the Group’s manufacturing capacities.
The Schuler Group, which is part of the ANDRITZ GROUP, derives approximately 80% of its sales from the
automotive industry, which is generally exposed to severe cyclical swings. Cyclical swings of this kind, e.g. as in the first three quarters of 2015, can lead to a significant decline in order intake as well as have a negative impact
on earnings of the Schuler Group and thus, on the ANDRITZ GROUP’s earnings. In addition, financial provisions
for continuing the successful measures already taken by Schuler during the past two years in connection with the implementation of operational measures in order to optimize the value chain will have a negative impact on
earnings of Schuler and thus also of the ANDRITZ GROUP in 2015.
Complete or partial goodwill impairments resulting from acquisitions may also negatively influence the earnings
development of the ANDRITZ GROUP if the targeted financial goals for these companies cannot be reached. In
addition, there is always some risk that partial or full impairment will have to be made for some trade accounts receivable.
For the majority of orders, the risk of payment failure by customers is mitigated by means of bank guarantees and export insurance. However, there is no guarantee that there will not be any individual payment failures that
will have a substantial negative impact on earnings development of the Group if they occur. Risks related to
deliveries to countries with medium to high political risks are typically also insured to a large extent. However, the requirements for full hedging of these risks are not always available. Quarterly credit risk reporting to the
Executive Board has been implemented in order to ensure transparency with respect to financial risks on
projects and to implement immediate countermeasures if necessary. The reporting shows the maximum expected unsecured credit risk for orders with a value of over one million euros, which are billed according to
percentage of completion (POC), as well as customer ratings.
ANDRITZ processes orders for the HYDRO business area in Brazil through ANDRITZ HYDRO S.A. (formerly
ANDRITZ HYDRO INEPAR DO BRASIL S.A.), which after acquisition of the remaining shares is now wholly-
owned by ANDRITZ. The former minority shareholder Inepar S/A Industria e Construcoes (“Inepar”) has entered into a judicial reorganization process. There is no guarantee that the reorganization process will be successful
and that Inepar will not become bankrupt and be liquidated. An Inepar bankruptcy could have a considerable
negative financial impact on ANDRITZ, especially due to claims of joint and several liabilities. ANDRITZ has substantial tax credits in Brazil from various transfer taxes. Some of these tax credits were seized as security by
the tax authorities for tax liabilities of Inepar and its affiliates on the premise that ANDRITZ HYDRO S.A. was part
of the Inepar economic group. ANDRITZ has also received certain labor claims from employees of Inepar entities claiming that ANDRITZ HYDRO S.A. is jointly and severally liable for such claims. ANDRITZ is vigorously
contesting these labor and tax claims in several labor and tax collection lawsuits in Brazil. As a result of Inepar’s
participation in a governmental tax refinancing program (REFIS), the tax lawsuits have been suspended. If Inepar
09 Management report
does not comply with its obligations under the REFIS program, then its original tax obligations will become due
and the tax proceedings against ANDRITZ HYDRO S.A. could resume.
In the course of its business, the ANDRITZ GROUP is party to numerous legal proceedings before both
administrative and judicial courts and bodies, as well as before arbitration tribunals. The substantial majority of such proceedings is of a nature considered typical of the Group’s business, including contract and project
disputes, product liability claims, and intellectual property litigation. Where appropriate, provisions are made to
cover the expected outcome of proceedings to the extent that negative outcomes are likely and reliable estimates can be made. There is no guarantee, however, that these provisions will be sufficient. Given the
amounts at stake in some of these disputes, a negative decision for ANDRITZ in one or several of these legal
disputes may have a material adverse effect on the earnings and liquidity position of the Group.
The product liability cases include a number of cases alleging injuries and/or death resulting from exposure to
asbestos.
Exchange rate risks in connection with the execution of the order backlog are minimized and controlled by
derivative financial instruments, in particular by forward exchange contracts and swaps. Net currency exposure of orders in foreign currencies is hedged by forward contracts.
In order to minimize the financial risks as best possible and to enhance monitoring, control, and assessment of its financial and liquidity position, the ANDRITZ GROUP implemented both a comprehensive treasury policy and
a transparent information system.
The ANDRITZ GROUP’s position in terms of liquidity is very good, and the Group has high liquidity reserves. The
Group avoids dependence on one single or only a few banks. To ensure independence, no bank will receive
more than a certain defined amount of the business in any important product (cash and cash equivalents, financial liabilities, financial assets, guarantees, and derivatives). With this diversification, ANDRITZ is seeking to
minimize the counterparty risk as best possible. Nevertheless, if one or more banks were to become insolvent,
this would have a considerable negative influence on the earnings development and shareholders’ equity of the ANDRITZ GROUP. In addition, the lowering of ANDRITZ’s credit rating by several banks can limit the financial
leeway available to ANDRITZ, particularly regarding sureties to be issued.
ANDRITZ pursues a risk-averse investment strategy. Cash is largely invested in low-risk financial assets, such as
government bonds, government-guaranteed bonds, money market funds, investment funds to cover pension
obligations, loans against borrowers’ notes insured by a certificate of deposit, or term deposits. However, turbulences on the international financial markets may lead to unfavorable price developments for various
securities in which the Group has invested or make them non-tradable. This could have an adverse effect on the
ANDRITZ GROUP’s financial result or shareholders’ equity due to necessary depreciation or value adjustments. The crisis has also heightened the risk of default by some issuers of securities, as well as by customers. The
Executive Board is informed at regular intervals of the extent and volume of current risk exposure in the
ANDRITZ GROUP.
The risk of a complete or partial breakdown of the euro zone and of a resulting possible collapse of the euro
currency decreased in the past few months, however, the possibility cannot be ruled out entirely. The effects of a still possible Greek exit from the euro cannot be forecasted at the moment. A complete or partial breakdown of
the euro zone or a decline in the exchange rate of the euro against the main international currencies would very
likely have a negative effect on the financial, liquidity, and earnings development of the Group. For further information on risks, please refer to the ANDRITZ annual financial report 2014.
Impact of exchange rate fluctuations Fluctuations in exchange rates in connection with the execution of the order backlog are largely hedged by
forward rate contracts. Exchange rate risks resulting from the recognition of equity are not hedged.
Depreciation of the euro against many other currencies could also have a positive impact on the shareholders’
equity as well on the sales and earnings development of the ANDRITZ GROUP (translation effect).
10 Management report
Information pursuant to Article 87 (4) of the (Austrian) Stock Exchange Act
During the reporting period, no major business transactions were conducted with related persons and companies.
Important events after reporting period The status of the global economy and the financial markets did not change substantially in the period between
the date of the balance sheet and publication of the present report.
OUTLOOK Economic experts do not expect any significant changes in the general economic conditions during the coming
months. While the economy in the USA should continue to show robust growth, Europe’s economy is expected to continue its moderate development. There are also no sustained growth impulses for the world’s economy
expected from countries in the emerging markets. Chinaʼs growth could continue to slow down, and economic
experts expect Brazil and Russia to remain in economic recession also in the coming months.
The prospects for the ANDRITZ business areas have not changed compared to the previous quarter.
A continuing difficult environment is anticipated in the HYDRO business area as a result of the unchanged low electricity and energy prices. Many modernization projects have been postponed or stopped temporarily,
particularly in Europe. Some larger, new hydropower projects are currently being planned in the emerging
markets, but award of these projects is expected only in the medium to long term. Continuing subdued investment activity is also expected in the metalforming sector (METALS business area/Schuler). As a result of
the weak demand in the automotive sector in China, most car manufacturers and suppliers have postponed or
put their investment decisions on hold for the time being. By comparison, in the PULP & PAPER business area a continuation of the good project activity is expected, both for larger modernization investments and for new
greenfield pulp mills.
Based on the above mentioned expectations regarding the development of the global economy and the current
project activity in the ANDRITZ business areas, and the order backlog as of the end of September 2015,
ANDRITZ currently expects an increase in sales and net income for 2015 compared to the previous year. The provisions of 55 million euros booked in the third quarter of 2015 in connection with the implementation of
operative measures to optimize the value chain at Schuler will be partly compensated by one-off improvements
in other areas so that the overall negative impact on the Groupʼs net income will be around 15 to 20 million euros.
However, if the economic weakness looming in the emerging economies (particularly China) continues in the coming months and the global economy suffers any severe setbacks or there is substantial turmoil on the
international currency and financial markets, this could have a negative impact on ANDRITZ’s business
development. This may lead to organizational and capacity adjustments in individual business areas, and as a result, to financial provisions that could have a negative effect on earnings of the ANDRITZ GROUP.
11 HYDRO
MARKET DEVELOPMENT Global investment and project activity for electromechanical equipment for hydropower plants continued to be moderate during the third quarter of 2015. Due to unchanged low electricity and energy prices, many
modernization and refurbishment projects were postponed until further notice, particularly in Europe. There are
some new hydropower projects in the planning phase in individual countries in South America and Africa. However, these projects are only expected to be awarded in the medium term. Unchanged satisfactory project
activity was noted both for small-scale hydropower plants and for pumps.
IMPORTANT EVENTS The electromechanical equipment supplied for the Ayvali hydropower station, Turkey, with a total installed
capacity of 130 megawatts was handed over to the customer for commercial use. In addition to the two main units, the delivery included two small-scale hydropower units in order to ensure the residual water use required
by government regulations.
The first of three 150-megawatt units was handed over successfully to J & K State Power Development at the
Baglihar II hydropower station, India.
The two 5.1-megawatts units supplied to the Rothleiten small-scale hydropower plant, Austria, were
commissioned successfully. ANDRITZ HYDRO supplied the bulb turbines, the generators, and the entire
electrical and control equipment.
In Vietnam, the Nam Chim 1A small-scale hydropower plant was handed over successfully to Song Lam
Investment and Construction. The entire electromechanical equipment, including the two 5-megawatt turbines, was installed in just 14 months.
IMPORTANT ORDERS For an order from Song Da Corporation, the business area is to deliver two 16-megawatt bulb turbines to the
Xekaman Sanxay hydropower station, Laos, providing more than 131 gigawatt-hours of electricity per year. This
is the third order this customer has placed with ANDRITZ HYDRO, following the successful supplies for the hydropower stations Xekaman 3 and Xekaman 1.
In the wake of the main order placed in 2013 to supply the electromechanical equipment for Xayaburi run-of-river power plant in Laos, ANDRITZ HYDRO was awarded a supplementary order by Karnchang to optimize the
fish ladder. The volume of water for the fish ladder will be doubled, making it possible at the same time to
generate a further 48 gigawatt-hours of electricity a year.
Salten Kraftsambad awarded the business area an order to supply the electromechanical equipment for
Norwegian hydropower stations Storavatn (two units with 27 megawatts and 8 megawatts, respectively) and Smibelg (one 33-megawatt unit).
LIMAK, Turkey, placed an order with ANDRITZ HYDRO for supply and installation of the gates and penstocks for the Yusufeli hydropower station currently being built (total installed capacity of 540 megawatts). The gates will
have a total weight of 2,200 tons, and the penstocks will weigh 3,800 tons in total.
The business area received an order from YaJiang Jin Tong Hydroelectric Development for the supply,
installation, and commissioning of two 130-megawatt units for the Da A Guo hydropower station, China.
The US Army Corps of Engineers placed an order for the refurbishment of a turbine and a generator at the
Lower Monumental hydropower plant, USA.
ANDRITZ HYDRO will upgrade the Sholayar hydropower station under an order from Tangedeco, India. The
scope of supply includes the electromechanical equipment for the two new 42-megawatt units. The installed
capacity will be increased from 70 to 84 megawatts.
For the Due small-scale hydropower plant, Ecuador, the complete electromechanical equipment will be supplied
under an order from Hidroalto.
VERBUND Austrian Hydro Power, Austria, awarded the business area with the replacement of generator parts at
the Wallsee hydropower station. The order comprises supply, installation, and commissioning of a new stator and of new generator poles.
HYDRO
12 HYDRO
For the renewal of the hydromechanical equipment of the Barrett Chute G.S. hydropower station, Canada,
Ontario Power Generation commissioned the business area to supply two new gates.
For Kolsin Vesivoimantuotanto, Finland, ANDRITZ HYDRO will upgrade the two 3.3-megawatt Kaplan turbines at
the Korkeakoski hydropower station.
As part of an agricultural irrigation project in southern Lebanon, the business area will supply four double-flow
pumps in order to make use of the pressure in the pipeline upstream of the balancing reservoir to generate electricity. At peak times, the plant on the Litani River will provide an output of more than 4.7 megawatts.
In order to guarantee the Las Vegas water supply, the business area will deliver another submersible motor pump to the South Nevada Water Authority, USA. ANDRITZ already successfully supplied pumps of this type to
this customer in the past.
13 PULP & PAPER
MARKET DEVELOPMENT In the third quarter of 2015, the international pulp market showed quite stable development. As a result of the largely balanced supply and demand on the pulp market, the prices for long-fiber pulp (Northern Bleached
Softwood Kraft) and for short-fiber pulp (eucalyptus) remained at the same solid level as in the previous quarter.
Overall, the market for pulping equipment saw good project and investment activity. In addition to modernization projects for existing pulp mills, there were also orders awarded for new greenfield plants.
IMPORTANT EVENTS Fibria, the world’s largest eucalyptus pulp producer, signed a letter of intent for ANDRITZ to supply all
production technologies and equipment for Fibria’s Horizonte 2 pulp mill in Três Lagoas, Brazil. The new
production line, which represents one of the largest private investments in Brazil, will have an annual production capacity of 1.75 million tons. The order comprises the EPC delivery of the complete woodyard, fiberline, pulp
drying plant, and recovery island (evaporators, recovery boiler, and white liquor plant). Start-up is scheduled for
the fourth quarter of 2017.
UPM Kymmene, Finland, started up the fiberline modernized by ANDRITZ, including a new washer and a new
pulp drying plant at its Kymi mill.
In the reporting period, the business area noted further important start-ups in China, e.g. a recycled fiber
processing line for Chongqing Lee & Man (capacity: 300 tons per day); an MDF pressurized refiner system for Xia’yi Husheng Panel Board; and another pressurized refining system for Luyuan 7.
Zhanjiang Chenming Pulp & Paper, China, started up a gasification plant. The plant will produce 65 megawatts of power from mill waste and biomass.
IMPORTANT ORDERS Chenming Huanggang, China, ordered a continuous cooking plant for the production of kraft and dissolving pulp.
ANDRITZ will also supply a burner system for the elimination of non-condensable gases.
Phoenix Pulp and Paper, Thailand, ordered the supply of a lime kiln used in the chemical recovery process in
order to increase production capacity and lime quality.
The ProGest Group, Italy, selected the business area to deliver key paper machine components for a
modernization project.
The business area will supply a circulating fluidized bed power boiler to Ibrahim Fibres, Pakistan.
Domtar Paper, USA, ordered a logyard circular crane for its Marlboro mill. The new crane will replace existing equipment and has a net lift capacity of 32 tons.
In the panelboard sector, ANDRITZ received an order for the supply of a pressurized refining system and chip washing plant from Duraplay de Parral, Mexico.
In the nonwovens sector, the business area received an order from Suominen, Finland, for a greenfield wetlace production line to be built in the USA.
PULP & PAPER
14 METALS
MARKET DEVELOPMENT During the reporting period, the metalforming sector for the automotive and automotive supplying industries (Schuler) was characterized by delays in many projects. Especially in China, many project decisions were
postponed until further notice due to the decline in the automotive market, and no larger orders have been
awarded in this market segment served by Schuler. In contrast, satisfactory investment activity was noted in all other metalforming areas, for example in forging technology.
Project activity for equipment for the production and processing of stainless and carbon steel strips remained unchanged at a low level. Selective projects focus primarily at modernizations and energy efficiency
improvements of existing plants. Investments in new plants were limited due to continuing moderate capacity
utilizations. Project and investment activity in the aluminum sector was below the favorable level of the preceding quarters and of the previous year.
IMPORTANT EVENTS Schulerʼs Servo TechCenter in Tianjin, China, started manufacturing the first components on a 1,600-ton press
with TwinServo technology. The demonstration and reference center targets customers and other interested
parties in the automotive supplier market in China.
Tangshan Iron and Steel Group, China, selected the business area to supply two continuous furnace plants for
two new hot-dip galvanizing plants. The two heat treatment lines will have a total annual capacity of 670,000 tons and are designed for the production of high-strength steel grades for the automotive industry. This
order follows the successful supply and start-up of furnaces and process equipment for another hot-dip
galvanizing line and a continuous annealing line for Tangshan Iron and Steel Group, China, ordered from ANDRITZ METALS two years ago and went into operation successfully after only 21 months.
Turkish steel producer Erdemir awarded ANDRITZ METALS the order to supply a continuous furnace plant for a new hot-dip galvanizing line with an annual capacity of 350,000 tons. The plant was designed to produce high-
strength steel grades for the automotive industry.
IMPORTANT ORDERS Prommashkomplekt, Kazakhstan, ordered a production line for railway wheel sets and track crossings from
Schuler and ANDRITZ Maerz. The line consists of two hydraulic presses (pressing force 5,000 and 10,000 tons, respectively) and a wheel roller from Schuler. ANDRITZ Maerz will supply a rotary hearth furnace and a plant for
heat treatment of the railway wheels.
Schuler received an order from Tesla, USA, to supply a blanking line. In addition, the manufacturer of premium-
class electric vehicles ordered a coil line, cut-to-length shears, stacking units, and a control system upgrade for
an existing press.
Flex-N-Gate, USA, placed orders for the supply of two fully automated mechanical Schuler transfer presses,
each with four-point suspension and 25,000 tons of pressing force, for the manufacturing of automotive components. Also in the USA, E+E Manufacturing ordered a Schuler servo press in tie rod design with a
pressing force of 2,000 tons.
For its plant in Weissensee, Germany, the North American automotive supplier Mubea ordered a warm-forming
press with a pressing force of 1,600 tons including automation systems to produce structural components from
tailored rolled blanks. These blanks are rolled to different sheet thicknesses in order to save weight.
SuperAlloy, Taiwan, the worldʼs second-largest producer of forged rims for cars and off-road vehicles, placed an
order with Schuler for three hydraulic forging presses (each with 7,000 tons pressing force) including a line control.
METALS
15 SEPARATION
MARKET DEVELOPMENT The global markets for solid/liquid separation equipment continued to show a mixed development in the third quarter of 2015. While investment and project activity in the environment, food, and chemicals sectors was
satisfactory, the demand from the mining industry continued to be very low. In the animal feed industry, project
activity for conventional and special feed was solid. Some mill expansion projects and greenfield plants were awarded or were in the planning phase. There was good project and investment activity in the biomass pelleting
sector.
IMPORTANT EVENTS The business area has developed a technology for the drying of lignin created in the bioethanol process.
Material from the fermentation of second-generation feedstocks can be dried and utilized in the production of bio-based products.
ANDRITZ successfully started up a dynamic cross-flow filtration system for a large Italian supplier of components for the automotive industry. The filter has a filtration area of 32 square meters and is utilized for the
recovery of oil from steel particles.
IMPORTANT ORDERS A major chemicals producer in Germany selected the business area to provide three side-bar filter presses for
a new line of catalyzers being built for pigment/dye applications.
ANDRITZ sold two fluid bed drying systems to customers in Turkey. One system will be installed for drying dense
soda ash and sodium bicarbonate. The new system reduces the amount of exhaust air to be treated by about 40% over the previous generation system installed at the plant, resulting in significant energy savings. The
second system will be installed as part of an expansion project of another soda ash plant.
A belt drying system for drying a mixture of municipal solid waste and refuse-derived fuels will be delivered to
a customer in the UK. The material will be dried utilizing waste heat from the plant.
The business area received an order to supply a contact drum dryer and wet mixing equipment for the
preparation of baby food prior to drying for a customer in Croatia.
A major chemicals producer in Germany is expanding production capacity and selected the business area to
deliver a contact drum dryer for the processing of polyvinyl.
A major pharmaceutical customer in Singapore awarded the business area an order to supply a plate drying unit
as part of a plant expansion project.
Two tapioca starch producers in Indonesia ordered three horizontal peeler centrifuges for capacity increases and
product quality improvements.
The business area received an order to supply a vacuum belt filter for a copper mining company in China. The
filter will improve dewatering capacity and increase production throughput. Also in China, a beverage processing
company ordered three separators for the processing of herbal tea, beer, and fruit juice.
SEPARATION
16 Consolidated income statement
For the first three quarters of 2015 (unaudited) (in TEUR) Q1-Q3 2015 Q1-Q3 2014 Q3 2015 Q3 2014
Sales 4,589,053 4,122,892 1,583,474 1,463,462
Changes in inventories of finished goods and work in progress 59,862 87,474 5,432 26,658
Capitalized cost of self-constructed assets 7,265 1,721 2,268 320
4,656,180 4,212,087 1,591,174 1,490,440
Other operating income 103,370 61,787 23,118 17,607
Cost of materials -2,457,251 -2,222,329 -825,311 -798,839
Personnel expenses -1,289,055 -1,176,822 -440,847 -387,314
Other operating expenses -649,183 -575,776 -215,016 -198,605
Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) 364,061 298,947 133,118 123,289
Depreciation, amortization, and impairment of intangible assets and property, plant, and equipment -102,998 -122,918 -33,639 -41,675
Impairment of goodwill -1,955 0 -2 0
Earnings Before Interest and Taxes (EBIT) 259,108 176,029 99,477 81,614
Expense from associated companies -89 -54 -69 -20
Interest income 33,467 22,237 6,790 7,663
Interest expenses -23,828 -24,040 -9,020 -7,744
Other financial result -5,557 147 -455 111
Financial result 3,993 -1,710 -2,754 10
Earnings Before Taxes (EBT) 263,101 174,319 96,723 81,624
Income taxes -79,633 -52,296 -29,134 -24,487
NET INCOME 183,468 122,023 67,589 57,137
Thereof attributable to:
Shareholders of the parent 181,267 123,600 67,401 56,853
Non-controlling interests 2,201 -1,577 188 284
Weighted average number of no-par value shares 103,173,835 103,731,925 103,086,647 103,611,979
Basic earnings per no-par value share (in EUR) 1.76 1.19 0.66 0.55
Effect of potential dilution of share options 589,603 241,323 389,256 261,183
Weighted average number of no-par value shares and share options 103,763,438 103,973,248 103,475,903 103,873,162
Diluted earnings per no-par value share (in EUR) 1.75 1.19 0.65 0.55
CONSOLIDATED INCOME STATEMENT
17 Consolidated statement of comprehensive income
For the first three quarters of 2015 (condensed, unaudited) (in TEUR) Q1-Q3 2015 Q1-Q3 2014 Q3 2015 Q3 2014
NET INCOME 183,468 122,023 67,589 57,135
Items that may be reclassified subsequently to profit or loss:
Currency translation adjustments 7,840 29,930 -25,565 26,929
Available-for-sale financial assets, net of tax -299 362 -271 498
Cash flow hedges, net of tax 395 0 2,385 -1,034
Items that will not be reclassified to profit or loss:
Actuarial gains/losses, net of tax 0 0 0 0
OTHER COMPREHENSIVE INCOME FOR THE YEAR 7,936 30,292 -23,451 26,393
TOTAL COMPREHENSIVE INCOME FOR THE YEAR 191,404 152,315 44,138 83,528
Thereof attributable to:
Shareholders of the parent 190,016 153,118 44,611 82,796
Non-controlling interests 1,388 -803 -473 732
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
18 Consolidated statement of financial position
As of September 30, 2015 (unaudited) (in TEUR) September 30, 2015 December 31, 2014
ASSETS
Intangible assets 212,384 242,593
Goodwill 541,922 538,475
Property, plant, and equipment 716,868 715,255
Other investments 114,546 71,225
Trade accounts receivable 22,124 62,522
Cost and earnings of projects under construction in excess of billings 0 25,634
Other receivables and assets 57,996 111,738
Deferred tax assets 220,376 212,406
Non-current assets 1,886,216 1,979,848
Inventories 750,434 693,234
Advance payments made 156,112 150,207
Trade accounts receivable 672,613 705,819
Cost and earnings of projects under construction in excess of billings 600,904 476,549
Other receivables and assets 345,804 350,339
Marketable securities 68,558 154,294
Cash and cash equivalents 1,208,507 1,457,335
Current assets 3,802,932 3,987,777
TOTAL ASSETS 5,689,148 5,967,625
SHAREHOLDERS’ EQUITY AND LIABILITIES
Share capital 104,000 104,000
Capital reserves 36,476 36,476
Retained earnings 920,972 857,601
Equity attributable to shareholders of the parent 1,061,448 998,077
Non-controlling interests 16,909 16,721
Total shareholders’ equity 1,078,357 1,014,798
Bonds 366,393 370,130
Bank loans and other financial liabilities 45,956 44,803
Obligations under finance leases 14,123 14,564
Provisions 612,478 548,840
Other liabilities 61,637 59,910
Deferred tax liabilities 160,151 137,672
Non-current liabilities 1,260,738 1,175,919
Bonds 0 150,839
Bank loans and other financial liabilities 27,277 75,907
Obligations under finance leases 708 802
Trade accounts payable 426,958 493,436
Billings in excess of cost and earnings of projects under construction 1,134,345 1,203,593
Advance payments received 260,260 251,288
Provisions 443,597 507,356
Liabilities for current taxes 43,514 46,470
Other liabilities 1,013,394 1,047,217
Current liabilities 3,350,053 3,776,908
TOTAL SHAREHOLDERS’ EQUITY AND LIABILITIES 5,689,148 5,967,625
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
19 Consolidated statement of changes in equity
For the first three quarters of 2015 (condensed, unaudited)
Attributable to shareholders of the parent Non-control-ling interests
Total share-holders’
equity
(in TEUR) Share capital Capital
reserves
Other retained earnings
IAS 39 re-serve
Actuarial gains/ losses
Currency translation
adjustments Treasury
shares Total
STATUS AS OF JANUARY 1, 2014 104,000 36,476 838,057 -381 -24,240 -45,718 -8,457 899,737 29,743 929,480
Total comprehensive income for the year 123,600 362 29,156 153,118 -803 152,315
Dividends -51,907 -51,907 -1,232 -53,139
Changes in treasury shares -769 -25,607 -26,376 -26,376
Other changes 3,453 -1 -5 -2,694 753 -639 114
STATUS AS OF SEPTEMBER 30, 2014 104,000 36,476 912,434 -20 -24,245 -19,256 -34,064 975,325 27,069 1,002,394
STATUS AS OF JANUARY 1, 2015 104,000 36,476 992,482 -3,684 -83,001 -15,249 -32,947 998,077 16,721 1,014,798
Total comprehensive income for the year 181,267 82 8,667 190,016 1,388 191,404
Dividends -103,240 -103,240 -734 -103,974
Changes in treasury shares -1,039 -23,778 -24,817 -24,817
Other changes 2,393 -981 1,412 -466 946
STATUS AS OF SEPTEMBER 30, 2015 104,000 36,476 1,071,863 -3,602 -83,001 -7,563 -56,725 1,061,448 16,909 1,078,357
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
20 Consolidated statement of cash flows
For the first three quarters of 2015 (condensed, unaudited) (in TEUR) Q1-Q3 2015 Q1-Q3 2014
Cash flow from operating activities 132,845 225,607
Cash flow from investing activities -12,818 57,977
Cash flow from financing activities -333,104 -36,761
Changes in cash and cash equivalents -213,077 246,823
Changes in cash and cash equivalents resulting from exchange rate fluctuation -35,751 27,982
Cash and cash equivalents at the beginning of the period 1,457,335 1,227,860
Cash and cash equivalents at the end of the period 1,208,507 1,502,665
CASH FLOWS FROM ACQUISITIONS OF SUBSIDIARIES* For the first three quarters of 2015 (condensed, unaudited) (in TEUR) Business area Total Total
PP1) Q1-Q3 2015 Q1-Q3 2014
Intangible assets 3,110 3,110 527
Property, plant, and equipment 2,894 2,894 2,264
Inventories 1,798 1,798 1,106
Trade and other receivables 7,149 7,149 36
Liabilities -5,983 -5,983 -2,253
Non-interest bearing net assets 8,968 8,968 1,680
Marketable securities 0 0 1,772
Cash and cash equivalents 950 950 0
Financial assets 327 327 0
Financial liabilities -2,116 -2,116 0
Goodwill 2,582 2,582 570
Non-controlling interests 0 0 0
Total purchase price 10,711 10,711 4,022
Purchase price paid -10,711 -10,711 -4,022
Cash and cash equivalents acquired 950 950 1,772
Net cash flow -9,761 -9,761 -2,250
Liabilities from purchase price not paid 0 0 0
Fair value of investments previously held under equity method 0 0 0
Purchase price not paid in cash 0 0 0 * Converted by using exchange rates as per dates of transaction
1) PP = PULP & PAPER
The initial accounting for the businesses acquired in 2015 is based on preliminary figures. The final evaluation of the balance sheet items disclosed in the cash flows from acquisition will be carried out according the regulations of IFRS 3 (revised) “Business Combinations”.
CONSOLIDATED STATEMENT OF CASH FLOWS
21 Notes
Explanatory notes to the interim consolidated financial statements as of September 30, 2015
General The interim consolidated financial statements as of September 30, 2015 were prepared in accordance with the principles set forth in the International Financial Reporting Standards (IFRS) – guidelines for interim reporting (IAS 34) – which are to be applied in the European Union. The accounting and valuation methods as of December 31, 2014 have been maintained without any change. For additional information on the accounting and valuation principles, see the consolidated financial statements as of December 31, 2014, which form the basis for this interim consolidated financial report.
Due to the utilization of automatic calculation programs, differences can arise in the addition of rounded totals and percentages.
The interim consolidated financial statements as of September 30, 2015 were neither subject to a complete audit nor to an audit review by an auditor.
Application of new standards Since January 1, 2015 ANDRITZ applies the annual improvements to IFRS (cycle 2011-2013). The application of these updated standards did not have any material impact on the interim consolidated financial statements.
Consolidated companies The consolidated financial statements include ANDRITZ AG and those it controls, where their influence on the assets, liabilties, financial position, and proit or loss of the Group is not of minor importance.
The scope of consolidated financial statements changed as follows:
Full consolidation Equity method
Balance as of January 1, 2015 139 3
Acquisition of companies 2
Disposal of companies
Changes in consolidation type
Additions 2
Disposals
Reorganization -7
Balance as of September 30, 2015 136 3
Thereof attributable to:
Domestic companies 6 0
Foreign companies 130 3
Acquisitions The following companies were not, or only partially, included in the ANDRITZ GROUP’s consolidated financial statements for the reference period January 1 to September 30, 2014: Acquired in 2014: Herr-Voss Stamco Inc., USA: supplier of coil and sheet metal processing solutions for both ferrous and non-
ferrous applications as well as service business Certain assets and employees of the hydrogenerator service business sector of ABB Schweiz AG, Switzerland Andritz Hydro AFI Inc., Canada: engineering, manufacturing, and maintenance of gates for hydropower plants Acquired in 2015: Yangzhou Metal Forming Machine Tool Co., Ltd., China: manufacturer of mechanical presses including the
automotive supplying, household appliances, and metal working industries. The acquisition is subject to approval by anti-trust authorities; the closing of the transaction is expected for Q4 2015/Q1 2016
Euroslot KDSS, France: design and manufacturing of filtration and separation equipment for the pulp and paper industry, the water and waste water treatment segment, and other industrial applications
NOTES
22 Notes
Acquisition of non-controlling interests The following changes occurred relating to non-controlling interests in the first three quarters 2015: In June 2015, ANDRITZ has acquired the remaining 25.67% shares of ANDRITZ HYDRO S.A. Araraquara,
Brazil. In May 2015, ANDRITZ has acquired the remaining 5% shares of ANDRITZ-Wolfensberger Special Alloy
Foundry Co. Ltd., Foshan, China. In April 2015, ANDRITZ has acquired the remaining 20% shares of Shanghai Shende Machinery Co. Ltd.,
Shanghai, China. In January 2015, ANDRITZ has acquired the remaining 49% shares of Precision Machine and Supply, Inc.,
Spokane/Washington, USA.
Seasonality As a rule, the business of the ANDRITZ GROUP is not characterized by any seasonality.
Notes to the interim consolidated income statement In the first three quarters 2015, sales of the ANDRITZ GROUP amounted to 4,589.1 MEUR and were thus 11.3% higher than the reference figure for the previous year (Q1-Q3 2014: 4,122.9 MEUR). The EBIT reached 259.1 MEUR (Q1-Q3 2014: 176.0 MEUR).
Notes to the consolidated statement of financial position Total assets of the ANDRITZ GROUP as of September 30, 2015 amounted to 5,689.1 MEUR and were thus 278.5 MEUR lower than the figure as of December 31, 2014 (5,967.6 MEUR). The net working capital as of September 30, 2015 amounted to -354.1 MEUR (December 31, 2014: -570.9 MEUR).
During the current business year, ANDRITZ AG paid dividends in the amount of 103.2 MEUR for the 2014 business year. During the first three quarters of 2015 660,000 shares were bought back; 77,408 shares were issued to ANDRITZ employees (mainly in connection with the exercise of share option programs).
Notes to the consolidated statement of cash flows Cash flow from operating activities of the ANDRITZ GROUP amounted to 132.8 MEUR in the first three quarters of 2015 (Q1-Q3 2014: 225.6 MEUR). This decrease was mainly due to project-related changes in the working capital.
Cash flow from investing activities during the first three quarters of 2015 amounted to -12.8 MEUR (Q1-Q3 2014: 58.0 MEUR). The change resulted mainly from higher investments in financial assets and marketable securities.
Cash flow from financing activities amounted to -333.1 MEUR in the first three quarters 2015 (Q1-Q3 2014: -36.8 MEUR). The strong change resulted mainly from the redemption of a corporate bond in February 2015 (nominal value: 150 MEUR) and from higher dividend payments (-103,2 MEUR in Q1-Q3 2015 versus -51,9 MEUR in Q1-Q3 2014).
23 Notes
Segment information Segment information is prepared on the following basis:
Business areas The ANDRITZ GROUP conducts its business activities through the following business areas: HYDRO (HY) PULP & PAPER (PP) METALS (ME) SEPARATION (SE)
Business area data as of September 30, 2015: (in TEUR) HY PP ME SE Total
Sales 1,309,572 1,586,375 1,239,816 453,290 4,589,053
EBITDA 116,059 167,417 58,162 22,423 364,061
EBITA 91,612 149,499 38,257 15,648 295,016
Capital expenditure 14,952 11,853 24,708 8,171 59,684
Depreciation, amortization, and impairment of intangible assets and property, plant, and equipment 27,518 24,828 40,415 10,237 102,998
Share of net profit/loss of associates 0 -89 0 0 -89
Shares in associated companies 0 0 0 0 0
Business area data as of September 30, 2014: (in TEUR) HY PP ME SE Total
Sales 1,232,210 1,369,894 1,111,810 408,978 4,122,892
EBITDA 114,482 85,513 87,033 11,919 298,947
EBITA 91,760 66,900 69,777 5,999 234,436
Capital expenditure 24,928 15,707 15,230 5,999 61,864
Depreciation, amortization, and impairment of intangible assets and property, plant, and equipment 26,104 26,064 58,613 12,137 122,918
Share of net profit/loss of associates 0 -54 0 0 -54
Shares in associated companies 0 0 0 0 0
24 Notes
Fair value hierarchy The levels of the fair value hierarchy and their application to financial assets and liabilities are described below: Level 1: Prices quoted in active markets for identical assets or liabilities Level 2: Information other than prices quoted on the market and which can be observed, either directly (i.e. as
prices) or indirectly (i.e. derived from prices) Level 3: Information on assets and liabilities is not based on observable market data
The following table allocates financial assets and liabilities measured at fair value to the three levels of the fair value hierarchy. It distinguishes fair value measurements by the significance of the input parameters used and reflects the availability of observable market data when estimating fair values.
(in TEUR)
Total as of September 30, 2015
thereof level 1
thereof level 2
thereof level 3
FINANCIAL ASSETS
At fair value through profit and loss - trading
Derivatives 30,407 30,407
Embedded derivatives 43,245 43,245
Available for sale
Investment securities 7,052 7,052
Marketable securities 68,558 68,558
Other receivables
Derivatives (hedge accounting) 22,406 22,406
171,668 75,610 96,058 0
FINANCIAL LIABILITIES
At fair value through profit and loss - trading
Derivatives 63,988 63,988
Embedded derivatives 14,989 14,989
Other liabilities
Derivatives (hedge accounting) 11,849 11,849
90,826 0 90,826 0
Important events after September 30, 2015 There were no extraordinary events subsequent to the balance sheet date.
25 Declaration pursuant to article 87 (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 2015
The Executive Board of ANDRITZ AG
DECLARATION PURSUANT TO ARTICLE 87 (1) OF THE (AUSTRIAN) STOCK EXCHANGE ACT
Wolfgang Leitner Humbert Köfler Joachim Schönbeck Wolfgang Semper
President and CEO PULP & PAPER (Service & Units),
SEPARATION
PULP & PAPER (Capital Systems),
METALS
HYDRO
26 Share
Relative price performance of the ANDRITZ share compared to the ATX (October 1, 2014-September 30, 2015)
Source: Vienna Stock Exchange
Share price development The development on international financial markets was influenced by uncertainties regarding the economic slowdown in China and other emerging markets as well as by the resulting high volatility on the stock markets during the reporting period. In particular, shares of companies with large sales exposure to emerging markets or the automotive industry came under pressure in the third quarter of 2015. In this environment, the ANDRITZ share price declined by 12.5% in the first three quarters of 2015. The ATX, the leading share index on the Vienna Stock Exchange, rose slightly by 1.8% over the same period. The highest closing price of the ANDRITZ share was 57.49 EUR (April 13, 2015), and the lowest was 38.14 EUR (January 8 and September 24, 2015).
Trading volume The average daily trading volume of the ANDRITZ share (double count, as published by the Vienna Stock Exchange) in the first three quarters of 2015 was 361,542 shares (Q1-Q3 2014: 294,685 shares). The highest daily trading volume was noted on June 19, 2015 (1,841,024 shares) and the lowest trading volume on May 21, 2015 (143,662 shares).
Own shares In the third quarter of 2015, a total of 660,000 own 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 2015, meetings with national and international institutional investors and financial analysts were held in Brussels, Hong Kong, London, Los Angeles, Melbourne, Munich, New York, San Francisco, Singapore, Sydney, and Zurich.
Key figures of the ANDRITZ share
Unit Q1-Q3
2015 Q1-Q3
2014 Q3 2015 Q3 2014 2014
Highest closing price EUR 57.49 47.58 53.69 43.34 47.58
Lowest closing price EUR 38.14 39.78 38.14 39.78 37.00
Closing price (as of end of period) EUR 40.24 42.22 40.24 42.22 45.69
Market capitalization (as of end of period) MEUR 4,185.0 4,390.9 4,185.0 4,390.9 4,751.8
Performance % -12.5 -7.6 -23.3 +0.6 0.0
ATX weighting (as of end of period) % 9.2950 8.2624 9.2950 8.2624 11.6479
Average daily number of shares traded Share unit 342,529 294,685 388,371 277,020 305,027 Source: Vienna Stock Exchange
80%
100%
120%
140%
Oct. '14 Nov. '14 Dec. '14 Jan. '15 Feb. '15 March '15 April '15 May '15 June '15 July '15 Aug. '15 Sept. '15
ANDRITZ
ATX
SHARE
27 Share
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 calendar 2015 and 2016
November 6, 2015 Results for the first three quarters of 2015
March 4, 2016 Results for the 2015 business year
March 20, 2016 Record date Annual General Meeting
March 30, 2016 Annual General Meeting
April 1, 2016 Ex-dividend
April 4, 2016 Record date dividend
April 5, 2016 Dividend payment
May 4, 2016 Results for the first quarter of 2016
August 5, 2016 Results for the first half of 2016
November 4, 2016 Results for the first three quarters of 2016 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.
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.