Despite weaker economy and rising interest rates: ANDRITZ significantly increases revenue and earnings in the first half of 2023

• Revenue up 24%, net income up 36% compared to H1 2022
• Order intake at 4,713 MEUR at the high level of H1 2022
• Growth trend sustainability intact
• First order in the field of green hydrogen

GRAZ, JULY 27, 2023. International technology group ANDRITZ significantly increased revenue and earnings in the first half of 2023 compared to the first six months of the previous year despite the cooling global economy.

With order intake stable, the order backlog at the end of June 2023 was six percent above the level at year-end 2022. ANDRITZ also expects a significant increase in revenue and earnings for the full year 2023 compared to the previous year.

Products for sustainable transformation on the customer side remain an important growth driver. ANDRITZ booked the order for the Luang Prabang hydropower plant in Laos in the second quarter. In addition, the company succeeded in entering the business with large-scale plants for the production of green hydrogen in Finland.

CEO Schönbeck: robust business despite difficult conditions
ANDRITZ CEO Dr. Joachim Schönbeck stated: “Business development in the first half of the year was positive. Despite the weakening economy and rising interest rates our project activity held up at a good level. We do not anticipate an economic turnaround in the second half of the year. For our green products, however, we expect demand to remain stable.”

Overview of key financial figures:

• In the second quarter of 2023, order intake saw very favorable development with 2,292.3 MEUR (+5.2% versus Q2 2022: 2,179.0 MEUR). The Hydro business area in particular was able to significantly increase its order intake due to the booking of a major order in Asia. The order intake of the ANDRITZ GROUP amounted to 4,712.5 MEUR in the first half of 2023 and was thus practically at the high level of the previous year’s reference period (-1.2% versus H1 2022 4,767.6 MEUR).
   
• The order backlog as of June 30, 2023 amounted to 10,569.0 MEUR and increased by 5.9% compared to the end of 2022 (9,976.5 MEUR).
   
• Revenue increased in the second quarter of 2023 by 19.9% compared to the previous year’s reference period (Q2 2022: 1,790.1 MEUR) to reach 2,146.4 MEUR. All four business areas recorded an increase in revenue, some of them significant, compared to the previous year. Revenue of the ANDRITZ GROUP in the first half of 2023 amounted to 4,109.0 MEUR and increased by 23.9% compared to the previous year’s reference period (first half of 2022: 3,317.0 MEUR).
   
• The EBITA in the second quarter of 2023 amounted to 174.1 MEUR, and was thus significantly higher than in the previous year’s reference period (+15.4% versus Q2 2022: 150.9 MEUR). In particular, the Pulp & Paper, Hydro, and Metals business areas were able to increase their earnings significantly compared to the reference period of the previous year. Profitability (EBITA margin) amounted to 8.1% (Q2 2022: 8.4%). EBITA of the ANDRITZ GROUP in the first half of 2023 increased in line with revenue and reached a very satisfactory level of 332.6 MEUR (+21.7% vs. H1 2022: 273.2 MEUR). EBITA margin was again at a very solid level of 8.1% (H1 2022: 8.2%).
   
• The net income (without non-controlling interests) increased significantly in the second quarter of 2023 to 122.3 MEUR (Q2 2022: 95.7 MEUR). In the first half of 2023, the net income (without non-controlling interests) amounted to 226.8 MEUR (H1 2022: 167.2 MEUR).

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. EUR = euros.

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PRESS RELEASE AVAILABLE FOR DOWNLOAD
This press release is available for download at andritz.com/news on the ANDRITZ web site.

FOR FURTHER INFORMATION, PLEASE CONTACT:

Susan Trast
Vice President Group Communications & Marketing
susan.trast@andritz.com
andritz.com

Stefan Schantl
Head of Investor Relations
stefan.schantl@andritz.com
andritz.com

ANDRITZ GROUP
International technology group ANDRITZ offers a broad portfolio of innovative plants, equipment, systems, services and digital solutions for a wide range of industries and end markets. Sustainability is an integral part of the company’s business strategy and corporate culture. With its extensive portfolio of sustainable products and solutions, ANDRITZ aims to make the greatest possible contribution to a sustainable future and help its customers achieve their sustainability goals. ANDRITZ is a global market leader in all four of its business areas – Pulp & Paper, Metals, Hydro and Separation. Technological leadership and global presence are cornerstones of the group’s strategy, which is focused on long-term profitable growth. The publicly listed group has around 29,900 employees and over 280 locations in more than 40 countries.

ANNUAL AND FINANCIAL REPORTS
The annual and financial reports are available for download on the ANDRITZ web site at andritz.com.

DISCLAIMER
Certain statements contained in this press release 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.