Andritz Rapport-Annuel PDF

Highlights of the 2002 Business Year
Order Intake
reaches record level
Sales and Earnings

below previous year
Continuation of
complementary acquisitions
Andritz Shares
outperform ATX
High Order Backlog

provides solid basis for 2003
Vision
"A Global Market Leader in
High-Tech Production Systems and
Services for Pulp and Paper, Steel,
and Other Specialized Industries"
Pulp and Paper Rolling Mills and Environment Feed Technology Other Operations /
Strip Processing and Process Hydraulic Machines
Lines Technologies
We engineer the future

Company Profile
Global Group
Publicly listed Andritz Group is a global market leader in the supply of customized plants,
systems, and services for the pulp and paper industry, the steel industry, and other
specialized industries (sewage sludge dewatering and drying, feed technology).
Global presence The Group is based in Graz, Austria, and production is conducted at 16 sites in Austria,
Germany, Finland, Denmark, the Netherlands, France, the USA, Canada, and China. With
over 60 affiliates and offices around the world, employing approximately 4,600 employees,
the Group also has a worldwide presence close to its customers.
With research centers in Europe and the USA, the Andritz Group develops innovative
processes and equipment on an on-going basis. These employ patented and proprietary
technologies which help the Group maintain its leadership position. The global presence
of Andritz, combined with technology leadership, strengthen the Group’s competitive
position and help to achieve important strategic goals.
Business Development and Financial Goals

Solid growth Through advancement of existing products, continuous development of new technical
solutions, and complementary acquisitions, the Andritz Group has grown an average of
10% each year. The Order Intake nearing 1.3 billion Euros in 2002 was a record level for
the Andritz Group. The company has been profitable for over 15 years in a row.
The Group’s financial goals are:

Long-term Sales growth of 10% per year on average
EBITDA Margin (as % of Sales) of over 7%
A Return on Capital Employed (ROCE) of over 20%
A dividend payout ratio of at least 30% of Net Income
Business Activities
The activities of the Andritz Group are focused within four strategic Business Areas, and
encompass the development, manufacture, and service for systems and plants for
producing all types of pulp (including equipment for recovery of chemicals), and
tissue paper: Pulp and Paper Business Area
processing steel strip: Rolling Mills and Strip Processing Lines Business Area
processing and treating waste water and sludge: Environment and Process
Technologies Business Area
producing animal feed: Feed Technology Business Area
The Andritz Group is a global market leader in each of the different market segments for
all four strategic Business Areas.
The company’s activities also comprise the production of different hydraulic machines
(e.g. water turbines, pumps for the pulp and paper industry) as well as components for
space technology: Other Operations / Hydraulic Machines.
/ andritz 2002
2
Company Profile
Strategy
The strategy of the Andritz Group is organic growth (through intensive R&D and Growth through
capitalizing on the synergies between Business Areas) combined with the acquisition of R&D and
complementary products and technologies. The goal is to become a comprehensive complementary
supplier of complete process lines in each of the Business Areas. This strategy has acquisitions
manifested itself in the acquisition of a number of companies over the past 12 years,
which has significantly strengthened the process competence in all Business Areas. In
the area of pulp and paper, the Andritz Group offers all process steps for producing any
kind of pulp, including the recovery of chemicals. Andritz is also the only company
worldwide to cover the entire process line for stainless steel strip finishing and hot-dip
galvanizing.
Continuous growth of the service business is a very important strategic objective for the
Group. Traditional service encompasses the sale of replacement parts and the
manufacture of engineered wear parts, which help customers achieve production
optimization and cost savings. More innovative, comprehensive service offerings include
Internet and eBusiness solutions – from on-line spare parts ordering, to complete plant
documentation, to on-line remote diagnostics of a customer's equipment.
Comprehensive cost management and future-oriented capacity optimization help secure

the Group’s long-term profitability.
The Company Boards
Managing Board: Supervisory Board:

Appointed members: Delegated Members:
Wolfgang Leitner Kurt Stiassny Johann Tschrischnig

(President and CEO) (Chairman) Brigitta Wasserbauer
Markku Hänninen Hans Albrecht Andreas Martiner
Franz Hofmann (Deputy Chairman)
Friedrich Papst Michael Hildisch

Bernhard Rebernik Christian Nowotny
Anton Schneider
Hellwig Torggler
/ andritz 2002
3
150th Anniversary of Andritz - The Milestones
■ 1852 - Andritz is founded by Hungarian entrepreneur Josef Körösi, who started his career as an apprentice in an
iron works in Hungary. At age 25, Körösi establishes his own company, a small iron foundry, in the Graz suburb of
Andritz.
■ 1900 - Andritz is transformed into a joint stock company.
■ 1950 - Creditanstalt-Bankverein, Vienna, buys the majority of Andritz shares.
■ 1987 - AGIV AG, an investment company headquartered in Frankfurt, Germany, becomes majority shareholder
of Andritz AG.
■ 1990-2000 - In 1990, Andritz begins to change its strategy from being a licensee for other manufacturers to an
international supplier of high-tech production systems. The purchase of Sprout-Bauer in the USA, specialists in
mechanical pulping systems (refiners) and animal feed, marks the beginning of the successful expansion of the
Andritz Group.
Further complementary acquisitions include Durametal Corporation in the USA, a producer of refiner plates (1992),
Kone Wood of Finland a leading supplier of equipment for wood processing in the pulp industry (1994), and Danish
Jesma-Matador A/S (later renamed Sprout-Matador), which strengthened Andritz’ position in Feed Technology
(1995).
■ 1998 - Andritz buys 75% of Sundwiger Eisenhütte Maschinenfabrik GmbH & Co., of Hemer, Germany. Sundwig
is a leading supplier of cold rolling mills and strip processing plants for the international steel industry.
■ 1999 - Ownership in Andritz changes once more. AGIV AG sells its shares to a consortium consisting of The
Carlyle Group, GE Capital, Unternehmensinvest AG, Deutsche Beteiligungs AG, Custos Privatstiftung (founded by
Andritz CEO Wolfgang Leitner) and other members of the Andritz Managing Board.
■ 2000 - Andritz buys the first 50% stake in Finnish Ahlstrom Machinery Group (later renamed Andritz-Ahlstrom),
making the Andritz Group one of the leading suppliers of production systems for all kinds of pulping and chemical
recovery.
With the purchase of Universal Milling Technology, Andritz further establishes itself as one of the world market
leaders in Feed Technology.
■ 2001 - In June, Andritz makes its initial public offering on the Vienna Stock Exchange, successfully placing two
million new shares with investors in Austria and other countries.
Immediately after the IPO, Andritz buys the remaining 50% in Andritz-Ahlstrom, which is merged with Andritz Oy,
Finland, a few months later.
■ 2002 - In May 2002, Andritz successfully places a 100 MEUR corporate bond with national institutional and retail
investors. The proceeds of the bond sale enable the company to create a solid financial basis for further Group
growth.
By acquiring ABB Drying, Andritz complements its process competence in the pulp and paper industry, enabling it
to offer complete drying and baling lines for market pulp. The purchase of the continuous strip annealing line from
/ andritz 2002
SELAS SAS, France, makes Andritz a supplier of complete hot-dip galvanizing lines (Rolling Mills and Strip
Processing Lines Business Area).
4
1953: Machining of the
pump turbine for Limberg
hydropower station,
Austria, in the production
workshops of former
Maschinenfabrik Andritz
/ andritz 2002
5
The Year 2002 at Andritz
■ February - Forest industry company Group Celulosa Arauco y Constitución, Chile, places a 50 MEUR order with
Andritz for a complete woodyard and chemical recovery systems for a greenfield kraft mill in Chile.
■ March - The results for Business Year 2001 are published. Andritz announces record Sales and Earnings Before
Interest and Tax (EBIT), increased profitability and doubled Net Income for the year.
■ April - Andritz receives an order to supply a complete sewage sludge treatment plant for the city of Ljubljana,
Slovenia. The system comprises thickening, dewatering, and drying – an important reference order in Southeast Europe.
■ May - Andritz successfully places a 100 MEUR corporate bond (coupon: 6%; term: 6 years) with institutional and
retail investors.
The remaining 50% stake in French affiliate Guinard Centrifugation, a specialist for centrifuges for sludge
dewatering, is purchased.
■ June - UPM-Kymmene, Finland, orders the largest chemical recovery island in the world worth over 100 MEUR
for Wisaforest pulp mill.
Andritz presents its new tissue machine concept - PrimeLine™. The concept features the highest flexibility in
manufacturing customized tissue grades.
■ July - The new Fiber Preparation Systems Division commences worldwide operations. The Division combines
the product and system know-how of Andritz and the former Andritz-Ahlstrom in recycling, stock preparation, paper
machine approach flow, and treatment of the paper sludge and waste water.
■ August - Andritz reports declines in Sales and EBIT for the First Half of 2002. However, Order Intake rises for the
Third Quarter in a row.
■ September - Andritz Fiber Preparation receives its first order for supply of a turnkey deinking system to Vipap
Videm Krsko Proizvodnja Papirja in Celuloze, Slovenia.
■ October - Andritz receives the Stock Exchange Award for 2002, honoring its professionalism in Investor
Relations. It is also the winner of the PIROL Award (Prize for Investor Relations Online).
Orders totalling 170 MEUR are received for chemical recovery systems in Germany, Portugal, and Austria.
Andritz acquires the continuous annealing line section from French SELAS SAS, complementing its product offering
in hot-dip strip galvanizing.
The acquisition of ABB Drying enables Andritz to offer complete drying and baling lines for market pulp. Andritz is
a complete equipment supplier for all types of fibers and covers the entire process line from the woodyard to market
pulp bales.
■ November - Andritz publishes the results for the First Three Quarters of 2002. Order Intake is above the
reference level for the previous year, Sales and EBIT are on the decline from previous year.
Two Andritz tissue machines for Chinese tissue maker Gold Hong Ye achieve speed records. After integrating the
/ andritz 2002
new Andritz PrimePickup™ system, one machine runs constantly at 2,020 m/min for two days in a row and produces
excellent quality.
6
2002: Successful
start-up of the new
fiberline constructed for
Aracruz Celulose, Brazil.
Andritz was the main
supplier for the project.
Letter from the Managing Board
Ladies and Gentlemen,

Dear Shareholders,
Record Order Despite difficult global economic conditions, the Andritz Group experienced satisfactory
Intake development during the past business year. Compared to the record year 2001, Andritz
had to manage declines in Sales and Net Income, in step with the general industrial
economy. However, this was offset somewhat by achieving a record level of Order
Intake, creating a solid basis for business development in 2003.
Andritz: supplier The favorable development of Order Intake can be attributed to the following factors:
of complete the complementary acquisitions we have made in order to extend our process
production competence in each Business Area, and our strategy to develop the company as a
systems supplier of complete production lines. The acquisitions of ABB Drying technology and
SELAS technologies for continuous strip annealing in October 2002 were two important
steps. This has clearly strengthened our process competence in the Pulp and Paper
Business Area and the Rolling Mills and Strip Processing Lines Business Area.
Another competitive advantage lies in the Group’s global presence. This ensures the
required closeness to our customers. Most customers also work on a global basis, and
our global reach enables us to offer comprehensive and rapid service. Our international
network and many reference installations in various parts of the world contribute to our
competitiveness, and allow us to take advantage of market opportunities that arise in
regions with an above-average growth rate.
The development of several new products has met with excellent acceptance from
customers around the world. In pulp and paper, a number of innovative product and
system solutions (Andritz PrimeLineTM concept for tissue machines and the Vertical AirTM
system for recovery boilers) were very successfully launched.
Our goal is to become the technologically preferred supplier to a wide spectrum of

customers, while keeping our cost structure as low as possible. Being seen as a reliable
and competent technological partner by our customers in all Business Areas, offering
them attractive prices, and executing the orders received within budget are absolute
prerequisites for success.
Further A priority for the current year is further integration of our organization within the Andritz
organizational Group at the strategic Business Area level. This should enable us to capitalize on
integration - an synergies, particularly when executing large orders and projects. We have taken steps
important goal for to optimize the organization through an internal Business Processes Program and have
2003 come much closer to this goal. We have seen positive results over the year, especially
in the sales phase of projects. This is just the beginning. In the future we want to act
even more uniformly on the market, and we want to guarantee our customers complete,
on-time execution of projects with minimal interfaces. A special project team has been
formed to actively design and optimize our business models and processes within the
Andritz Group.
/ andritz 2002
8
Friedrich Papst
Bernhard Rebernik
Wolfgang Leitner
(President and CEO)
Markku Hänninen
Franz Hofmann
/ andritz 2002
9
In the coming years, we will continue to increase our investments in information

technology in order to optimize our own business processes and our customer
orientation. Today, we offer customers internet-based platforms such as the Pulp and
Paper Service Club. One of the features of the Service Club is online ordering of
replacement and wear parts. The extension of our Customer Relationship Management
System, which has been implemented Group-wide, will make it possible in the future to
deliver our products and services in a coordinated and personalized manner to individual
customer requests. It will also help us standardize and streamline our workstreams and
proposals. In the area of procurement, we have implemented web-based solutions
(eProcurement) to automate some purchasing transactions and take advantage of online
auctions. We have the potential here to improve our efficiencies and costs further.
Successful issue Of special importance for the Andritz Group’s medium-to-long-term development was
of corporate the successful issue of the 100 million Euro corporate bond in May 2002. The proceeds
bond, Andritz allowed us to redeem our existing interest-bearing borrowings and to optimize our
Shares financing structure on a sustained basis. Together with its high net liquidity, the Andritz
outperform ATX Group has a solid financial basis for further growth.
The development of Andritz Shares during their first full year on the Vienna Stock
Exchange was very satisfactory. Andritz shares gained 7.9% over the year, clearly
outperfoming the ATX index. As we have previously stated, it is our goal to increase our
comparatively small free float (approx. 16% of our shares) as soon as conditions on
international financial markets permit.
The Managing Board wishes to thank all employees in the Group for their input and
performance during the year under review. We have been able to hold our own in a very
difficult economic environment due to the contribution and diligence of each employee
in the worldwide Group. We thank our customers and business partners for the
confidence they have placed in us, and assure them that we will perform to their
requirements fully during the year to come.
Andritz AG Managing Board

/ andritz 2002
10
Status Report
Status Report
General Economic Conditions
The global economy developed much less favorably in 2002 than the leading economic Weak global
researchers had predicted at the beginning of the year. The slight recovery during First economy
Quarter of 2002, which continued into Second Quarter, gave reason to expect a gradual
acceleration of economic growth. These assumptions were supported by published
economic indicators (purchasing managers' index, consumer confidence, etc.) which
pointed toward a continuation of the moderate economic upswing in the USA. These
early indications were not sustained. The US economy continued to weaken during the
Third Quarter of 2002. In its “Beige Book,” the US Federal Reserve Board stated that
economic growth had once more slowed down slightly since last summer. In response
to this, the Federal Reserve Board lowered the US prime rate another 50 basis points in
November, bringing it to its lowest rate in 41 years.
The development in Euroland mirrored that in the US. The deterioration in export Sales by
prospects resulting from continued weakness of the global economy, as well as lower Business Area
building investments and retail sales, signalled only a very moderate economic recovery.
100%
Rolling Mills and Strip Processing Lines
Environment and Process Technologies

Sources: OECD, WIFO
Pulp and Paper

The 2002 Business Year
Sales
Feed Technology
Andritz Group Sales for year 2002 were 1,110.1 MEUR, 15.8% below the record level
achieved in 2001 (1,318.7 MEUR). The reason for this decline was the low Order Intake
during the Second Half of 2001 and the First Quarter of 2002 that came in the wake of
Others
the prevailing economic situation and affected Sales with a certain time lag. In addition,
many projects were nearing final acceptance in the course of 2002 and some new
60% 16% 11% 10% 3%
projects were only in their initial stages, so they translated only partly into Sales.
Order Intake and Order Backlog

Order Intake by the Andritz Group progressed quite satisfactorily. Despite weakness in Order Intake
global markets, Andritz secured the largest Order Intake in its history. Total Order Intake reaches record
of 1,299.7 MEUR for the year was 16.0% higher than the previous year (1,120.9 MEUR). level in 2002
Particularly pronounced increase for the Pulp and Paper Business Area is notable. The
Kraft Mill Systems Division (Pulp and Paper Business Area) won very important orders for
chemical recovery systems. For instance, the largest chemical recovery island in the
world was ordered from Andritz for UPM-Kymmene in Finland. In addition Order Intake
for the Tissue Machines Division also increased significantly. Environment and Process
Technologies also secured the largest Order Intake since its formation (147.7 MEUR).
Major orders included sewage sludge dewatering and drying plants in Sacramento and
Honolulu in the USA, and Paris, France.
/ andritz 2002
11
Status Report
The Order Backlog of the Andritz Group also developed very favorably, reaching 903.6
MEUR at year's end. Compared to the previous year (31.12.2001: 740.4 MEUR) this is
an increase of 22.0%, giving Andritz a solid backlog of orders for 2003.
Earnings
Decline in Andritz Group Earnings were lower than the record level achieved during the previous
Earnings year, essentially due to decreased Sales and curtailed Earnings in the Pulp and Paper
compared to and Environment and Process Technologies Business Areas. The weakness in the North
record 2001 American service business (Pulp and Paper) and cost overruns on certain projects
(Environment and Process Technologies) were additionally responsible for the decline in
Earnings. The other Business Areas of the Group developed very favorably, for instance
Rolling Mills and Strip Processing Lines, whose EBITDA (Earnings before Interest, Tax,
Depreciation and Amortization of Goodwill) increased markedly.
In total, Earnings before Interest, Tax, Depreciation and Amortization of Goodwill

(EBITDA) was 80.9 MEUR for 2002, a decline of 14.4% from the previous year’s all-time
high (94.5 MEUR). Profitability expressed as EBITDA margin increased from 7.2% in
2001 to 7.3% in the year under review. Earnings Before Interest and Tax (EBIT) totalled
45.3 MEUR (2001: 54.6 MEUR).
The Financial Result for 2002 declined from the previous year to 0.5 MEUR (2001: 5.5
MEUR). This is mainly attributed to lower interest levels - especially in the USA – and
expenses in conjunction with the hedging of interest risks related to the 100 MEUR
Andritz corporate bond. The results are also burdened by the valuation of Financial
Assets at year-end and the financial instruments that are maintained as security for
project-related currency risks.
Earnings Before Tax amounted to 45.7 MEUR in 2002 (2001: 60.1 MEUR). The Net
Income for the year, before deducting Minority Interests, was 27.6 MEUR (2001: 37.5
MEUR).
Andritz Group Key Figures (IAS)
MEUR 2002 2001 % change
Sales 1,110.1 1,318.7 -15.8%

EBITDA 80.9 94.5 -14.4%
EBITDA Margin 7.3% 7.2% –
EBITA 58.7 68.0 -13.7%
EBITA Margin 5.3% 5.2% –
Earnings before Interest and Tax (EBIT) 45.3 54.6 -17.0%
Earnings before Tax 45.7 60.1 -24.0%
Net Income for the Year
/ andritz 2002
(including minorities) 27.6 37.5 -26.4%
12
Status Report
Net Worth Position and Capital Structure
The balance sheet as of December 31, 2002 shows the following changes over the
balance sheet as of December 31, 2001:
The 100 MEUR corporate bond issued in May 2002 increased long-term Liabilities to Net liquidity
100.6 MEUR (31.12.2001: 1.0 MEUR). Approximately half the proceeds of the bond increases to 102.6
were used to redeem interest-bearing short-term financial obligations (2001: 47.5 MEUR
MEUR). The remaining proceeds were assigned to cash assets, which rose to 188.1
MEUR as of December 31, 2002 (31.12.2001: 117.8 MEUR). The Andritz Group’s net
liquidity was 102.6 MEUR as of 31.12.2002 (31.12.2001: 77.3 MEUR).
The Andritz Group’s equity capital as of December 31, 2002 was 222.9 MEUR and has
therefore decreased 7.4 MEUR compared to December 31, 2002 (230.3 MEUR). The
reason is the increase in the exchange rate of the Euro against the US Dollar, which
caused the equity capital of Andritz holdings in the area of the US Dollar to decrease due
to conversion effects. This exchange rate effect was partly compensated by the hedging
reserve according to IAS 39 (valuation of financing instruments at the current value).
With an equity ratio of 24.5% as of December 31, 2002 (compared to 24.5% for the
previous year), the Andritz Group has a solid and balanced financial structure.
Research and Development
Research and Development is an important strategic activity in the Andritz Group. More
than 160 people work in the company’s research centers in the USA, Austria, Finland,
and France to find new processes and products with which the Andritz Group’s
technological lead is to be secured for all product ranges on a long-term basis. In
addition, pilot plants are operated in cooperation with customers.
The Andritz Group invested a total of 30.1 MEUR for Research and Development in
2002. Including the expenditure for contract-related development, the total R&D
expenditure for new processes and products amounted to over 3% of Sales during the
reporting period.
The Divisions of the Pulp and Paper Business Area continued the development of
processes for fiber quality improvement. Considerable development work was also
aimed at reducing waste in the production process (energy conservation, re-use of
chemicals and water, etc.). A number of new service products were developed. New
products and technologies, most notably SelectaFlotTM flotation technology, CompaDisTM
dispergers, PapillonTM refiners, and LemaxX®-Spiral refiner plates, were successfully
launched. The world's largest cross-cutter for market pulp was successfully placed in
operation.
/ andritz 2002
13
Status Report
In the Rolling Mills and Strip Processing Lines Business Area, further process optimizations
were made on levelling lines and coating lines. Computer simulation of process runs is
being conducted in order to achieve better plant integration. The first regeneration system
using the advanced Pyromars process was started up. The newly developed silicon
separation unit for high-silicon waste acid was also successfully launched.
In Environment and Process Technologies, the performance range of standard drying

equipment was extended both upwards (up to 20 t/h evaporation rate for fluidized bed
dryers) and downwards (starting at 500 kg/h for belt drying equipment). The newly
developed belt dryer can operate with low temperature waste energy sources, such as
hot water, low-pressure steam, or off-gas.
Feed Technology’s research activities concentrated on the successful conclusion of the

product developments which had been initiated over the past three years. Many new
products (new generation of pellet presses, hammermills, extruder lines, and optimized
control concepts) were successfully brought to market.
Outlook
In the course of 2002, leading economic research institutes (OECD, WIFO) have reduced
their forecasts of economic growth for the year 2003. Due particularly to the continued
weakness of the German economy, Euroland’s gross domestic product (GDP) in 2003 is
expected to grow by a mere 1.4%. Researchers are more optimistic about the United
States, whose GDP is predicted to rise by 2.2%. According to the forecasts, Japan will
leave the economic trough only temporarily and its GDP is likely to grow by just 0.8% in
2003. The global economy is not expected to return to long-term growth until at least
2004. The possibility of war against Iraq and a further downward trend in international
financial markets would be capable of further delaying or even shattering the global
economy’s recovery.
Based on these macro-economic assessments, leading research institutes (RISI, Jaakko

Pöyry, Heinz H. Pariser) expect a moderate recovery for the principal markets that are
relevant for the Andritz Group (i.e. pulp, paper, and steel) in 2003.
According to forecasts, it will not be until the Second Quarter or the beginning of the
Third Quarter of 2003 that the international pulp market might improve and price
increases might materialize. The essential impetus for this will likely come from Asian
markets, but also through rising demand in the US. By the time of publication of this
Annual Report, a number of pulp producers had announced price increases for the
month of February. From today’s point of view, generally good project activity can be
expected, which will increase over the year.
/ andritz 2002
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Status Report
The global steel market is expected to develop similarly. Some large inventories of end-users
and the moderate total demand that is due to the economic situation will have a marked
influence on the development during the First Half of 2003. A sustained upward development
is not to be expected before the Second Half of 2003. Expectations for the stainless steel
market are slightly more optimistic, and it is expected to see higher growth rates during the
coming year than the general steel market. Higher project activity is expected particularly in
China.
The Andritz Group expects its business to develop favorably in 2003, with slight Andritz expects
increases over the previous year for Sales and Net Income. This expectation is mainly increase in Sales
backed by the Group’s high Order Backlog as of December 31, 2002 (903.6 MEUR), and Net Income in
which, together with the short-term service business, results in a good Sales and 2003
Earnings visibility for 2003. As matters are today, the Andritz Group expects good
project activity for all four strategic Business Areas. Especially in South America, Asia,
and Europe, where Andritz enjoys a good market position and has a number of reference
plants, major projects should be awarded for pulp and papermaking equipment and for
(stainless) steel production plants.
If, however, the global economic upswing that forecasters predict for the Second Half of
2003 should lag further, then the Andritz Group’s Earnings development will likely be
adversely affected.
In 2003, the Andritz Group will continue its Group-wide integration that was begun in
2002 and successfully implemented. Increased consolidation and integration of the
newly acquired companies into the Business Area organizations should bring a more
uniform presence of the Group in global markets, and is expected to generate additional
synergies in Group-wide business processes. This should further reduce fixed costs
and, therefore, improve the Andritz Group’s competitive position.
/ andritz 2002
15
The Business Areas of the
Andritz Group at a Glance
Pulp and Paper Rolling Mills and Strip

Processing Lines
Profile Profile
The Pulp and Paper Business Area is a global leader in The Rolling Mills and Strip Processing Lines Business
the supply of complete lines, systems, processes, and Area designs and constructs complete lines for the
services for production of all types of pulp, kraft mill production of cold-rolled carbon steel, stainless steel,
chemical recovery, fiber preparation in papermaking, and non-ferrous metal strip. The Andritz Group is the
tissue production, and engineered, customized, and only supplier to provide all processes involved in the
technologically advanced wear and spare parts. manufacture of stainless steel (rolling, annealing, and
Extensive services complete the large product portfolio. pickling) on a comprehensive basis and can supply all
the production systems through a single source. For
Products steel strip coating, Andritz offers the two common
Production lines, systems and processes processes for steel strip galvanization: electrolytic and
for all production steps in the woodyard hot-dip galvanizing.
for production of chemical pulp, including
chemical recovery Products
for production of mechanical pulp in the paper Equipment for the steel, stainless steel, non-ferrous
and board industry metal, and aluminium industry:
for production of mechanical fibers for MDF Cold rolling mills
fiberboards Strip processing lines
for processing recycled paper, preparing stock for Surface treatment systems
all paper/board/tissue making processes, and for Finishing systems
paper machine approach flow systems Regeneration plants
for pulp drying, cutting, and baling Continuous heat treatment systems
for production of tissue paper: CrescentFormer
machines, through-air drying machines and tissue
machines with the TissueFlexTM*) shoe press
for sludge dewatering and in-mill recycling of water
as well as
services: original replacement parts, engineered,
customized and technologically advanced wear
parts, equipment rebuilds, and modernizations
pumps for the pulp and paper industry
dynamic simulation of all mill processes
*) Trade mark of Voith Paper, cooperation partner of Andritz

/ andritz 2002
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The Business Areas of the Andritz Group at a Glance
Environment and Feed Technology
Process Technologies
Profile Profile
The Environment and Process Technologies Business The Feed Technology Business Area is one of the
Area focuses on sewage sludge dewatering and drying. global market leaders in developing and manufacturing
Its product range covers the entire spectrum of systems, machines, and processes for the industrial
technologies for mechanical and thermal treatment of production of animal feed. This comprises complete
sludge from municipal and industrial sewage sludge feed mill lines as well as unit equipment for grinding
plants. The Business Area handles the planning, and mixing, expanding, pressing, extruding, cooling,
manufacture, erection, and start-up of complete vacuum coating, and drying. The Business Area also
systems, including automation and safety engineering. supplies plants and systems for industrial production of
Critical machines and components (drum and belt biofuel pellets.
thickeners, belt filter presses, centrifuges, belt, drum
and fluidized bed dryers) are developed and produced Products
in-house. Size reduction systems
Conditioners and expanders
Products Pellet mills
Plants, systems, machines and processes for Extruders
Process water treatment Dryers and cooling equipment
Mechanical waste water treatment Pellet coating systems
Sludge thickening Spare and wear parts
Sludge dewatering
Sludge drying
Thermal sludge utilization
Industrial solid/liquid separation Other Operations /
Hydraulic Machines
Profile
Other Operations encompass Andritz Group activities
such as the planning, development, and manufacture of
water turbines, large-scale pumps for selected appli-
cations, pumps for the primary and secondary loop in
nuclear power stations, centrifugal pumps for the pulp
and paper industry, as well as space technology
components.
Products
Water turbines
Large-scale pumps
Centrifugal pumps
Reactor pumps
Space technology components
/ andritz 2002
17
New fiberline constructed for Aracruz
Celulose, Brazil. Andritz supplied a
complete woodyard, fiberline
(washing, screening, bleaching),
chemical recovery systems, the
world’s largest sheet drying system
and baling lines.
/ andritz 2002
18
Pulp and Paper
Pulp Mill Technologies
Wood Processing Division 24
Kraft Mill Systems Division 26
Pulp Mill Services Division 30
Paper Mill Technologies

Mechanical Pulping Systems Division 33
Fiber Preparation Systems Division 38
Tissue Machines Division 41
Paper Mill Services Division 45
/ andritz 2002
19
Pulp and Paper
Business Area Profile

Managers: The Pulp and Paper Business Area is one of the global leaders in the supply of
systems, equipment, and services for the production of all types of fiber (chemical
Markku Hänninen pulp, mechanical pulp, and recycled fibers) including chemical recovery systems. The
(Pulp Mill Business Area also supplies stock preparation and machine approach systems for
Technologies) making paper, board, and tissue, and sheet drying/baling systems for market pulp.
Bernhard Rebernik The Business Area's products are supplemented by customized, engineered, and
(Paper Mill technologically advanced wear parts such as refiner plates, chipper knives, screen
Technologies) baskets, as well as a full array of technical services.
The successful acquisition of complementary product areas over the past few years
enables the Pulp and Paper Business Area to supply complete processing lines from
the woodroom to pulp fiberlines to the finished pulp bale.
With the acquisition of ABB’s Drying Business (now Andritz Fiber Drying) in October
2002, the Business Area has added process and system competence to its existing
know-how in sheet and flash drying and dryer hoods for tissue. Prior to the
acquisition, Andritz supplied the pulp dewatering equipment upstream of the pulp
dryer and the cutting/baling equipment downstream of the dryer.
Following the expiration of the cooperation agreement with Voith Paper in the area of
stock preparation, the global Fiber Preparation Systems Division was established. It
has operated worldwide since July 1, 2002, combining the activities of Andritz and the
former Andritz-Ahlstrom for stock preparation and recycled fiber preparation.
The market and customer-oriented strategy of the Business Area is reflected in its
organization which came into effect on January 1, 2002. "Pulp Mill Technologies” is
subdivided into the Wood Processing, Kraft Mill Systems, and Pulp Mill Services
Divisions, and "Paper Mill Technologies” comprises the Mechanical Pulping Systems,
Fiber Preparation Systems, Tissue Machines and Paper Mill Services Divisions.
In each major market, the Pulp and Paper Business Area has a number of service and
sales locations. In Asia and Latin America, Andritz has improved its strong foothold
considerably with excellent reference deliveries.
/ andritz 2002
20
Pulp and Paper
Market Development
The development of the international pulp market varied widely over 2002. During the Wide variations in
First Quarter, the demand for NBSK (Northern Bleached Softwood Kraft pulp) was quite market develop-
moderate on account of the adverse economic development, and the price decreased to ment in 2002,
approx. US Dollar 430 per ton. Production curtailments on the part of the large global overall project
pulp producers and a slightly rising demand caused Norscan inventories to go down activity satis-
markedly in the course of the Second Quarter. Toward the end of June, inventories factory
reached 1.3 million tons, lower than the landmark of 1.5 million tons that market observers
consider as the limit for a balanced market. Slight price increases in May and June took
the NBSK price to about US Dollar 470 per ton. The price of eucalyptus pulp developed
especially favorably, increasing to as much as US Dollar 520 per ton and exceeding the
price for NSBK.
Many paper mills were not producing to capacity due to weak demand. This affected
pulp sales and led to a higher output of pulp despite the weak demand. The result was
an on-going decline in pulp pricing. By the end of December 2002, Norscan inventories
had increased to over 1.6 million tons.
Despite the difficult situation on the pulp and paper market, especially during the Second
Half, project activity was satisfactory. Most projects were for upgrading and modernizing
existing production lines. In China, project activity was particularly brisk, but the North
American market remained at a very low level.
Business Development in 2002

The Sales of the Pulp and Paper Business Area were 672.2 MEUR in 2002, a decline of Decline in Sales
23.9% compared to the previous year (2001: 883.0 MEUR). The main reason was the
low Order Intake of the previous year’s Second Half, and the weak development of the
service business during the first six months of 2002, especially in North America.
Pulp Mill Technologies had a decline in Sales of 26.2% to 382.8 MEUR (2001: 518.7
MEUR). The Wood Processing and Kraft Mill Systems Divisions suffered above all from
a low Order Intake in 2001 and consequent Sales declines. On the other hand, the
service business, represented by the Pulp Mill Services Division, had Sales that were
only slightly below those of the previous year.
Paper Mill Technologies Sales amounted to 289.4 MEUR; compared to the amount
achieved in 2001 (364.3 MEUR), this marks a 20.6% decline. All Divisions of Paper Mill
Services recorded declines in Sales.
Due to the declining Sales and the weak development of the services business in North
America – which was especially pronounced during the First Half of the year - EBITDA
decreased 23.4% from the previous year, to 53.5 MEUR (2001: 69.8 MEUR). Profitability
expressed as EBITDA margin was increased to 8.0% (2001: 7.9%).
/ andritz 2002
21
Pulp and Paper
Increase in Order Order Intake developed satisfactorily, reaching 843.3 MEUR during the year in review.
Intake This exceeded the previous year by 31.2% (2001: 642.8 MEUR). The upswing is mainly
due to large orders booked for chemical recovery systems.
It is furthermore reflected in the overview of the Order Intake by business segments.

Based on the excellent development of the Kraft Mill Systems Division, which almost
doubled the Order Intake versus 2001, the Pulp Mill Technologies business segment’s
order bookings rose 55.0% to 503.7 MEUR (2001: 324.9 MEUR).
The Order Intake for Paper Mill Technologies was 339.6 MEUR, or 6.8% above the
previous year (318.0 MEUR). While the Mechanical Pulping Systems and the Tissue
Machines Divisions increased their Order Intakes considerably from the previous year,
the Fiber Preparation Systems and Paper Mill Services Divisions recorded Order Intake
declines.
Key Figures for the Pulp and Paper Business Area (IAS)
MEUR 2002 2001 2000 1999
Sales 672.2 883.0 718.6 328.5

Order Intake 843.3 642.8 886.6 298.2
Order Backlog 31.12. 582.0 431.5 666.5 195.3
EBITDA 53.5 69.8 44.6 25.0
EBITDA margin 8.0% 7.9% 6.2% 7.6%
EBITA 39.2 53.9 30.8 18.2
EBITA margin 5.8% 6.1% 4.3% 5.5%
Capital investments 11.5 10.8 15.0 8.6
Employees 2,634 2,626 2,656 1,426
/ andritz 2002
22
Pulp and Paper
Major Orders for Pulp Mill Technologies:
UPM-Kymmene of Finland selected Andritz to supply a complete chemical recovery

system for its Wisaforest pulp mill in Pietarsaari. Total contract value is over 100 MEUR.
This mill will be the largest chemical recovery plant in the world.
The contract with RWE Industrie-Lösungen GmbH, which has been commissioned to
construct a new kraft mill for Zellstoff Stendal GmbH in Saxony-Anhalt, Germany,
became effective. Andritz will supply the evaporation plant, chemical recovery boiler,
and recausticizing plant.
Chilean forest products company Celulosa Arauco y Constitución S.A. entrusted

Andritz with the supply of a complete wood and chip processing plant and extensive
chemical recovery systems, including the evaporation plant for a greenfield kraft pulp
mill in Valdivia, Chile.
Major Orders for Paper Mill Technologies:
Just a few weeks after the Fiber Preparation Systems Division commenced its global
operations on July 1, 2002, the Division recorded sales successes with its new flotation
technology SelectaFlotTM and disperging unit CompaDisTM. Complete systems were sold to
Papiers Stadacona, Canada, Vipap Videm Krsko, Slovenia, UPM-Kymmene Shotton Paper,
United Kingdom, PT Aspex Paper, Indonesia, and well-known Chinese paper companies,
Shandong Bohui Industrial Co. Ltd. and Shandong Tralin Paper Ltd.
SCA Tissue North America LLC, USA, ordered a wet-crepe tissue processing line from Tissue machine
Voith Andritz Tissue LLC, the 50:50 joint venture between Andritz and Voith Paper. The new for SCA Tissue
machine will be installed at a greenfield tissue mill in Alabama, USA. North America
German tissue producer WEPA was the first to select a new Andritz PrimeLine™ tissue
machine.
The Mechanical Pulping Systems Division extended its market leadership in China by Mechanical
securing orders for the delivery of TMP systems for papermaking and pressurized refiner Pulping Systems
systems for fiberboard production. Orders included a major contract from Dare Wood Division extends
Industries for the largest fiber production line ever installed in China. market leadership
in China
New service centers were established in China and Chile. Local rebuild capabilities were
improved in Southeast Asia by introducing a partnership with a local high-quality workshop
in Jakarta, Indonesia.
/ andritz 2002
23
Pulp and Paper
Wood Processing Division
Division Manager: Profile

The Wood Processing Division is one of the world’s leading suppliers of systems,
Jarmo Viiala equipment and processes for all steps required in a woodyard – from the arrival of logs
Hollola, Finland to their subsequent preparation into wood chips – for the production of chemical and
mechanical pulps.
The Wood Processing Division is headquartered in Hollola, Finland, and has sites in
Sweden, USA, Canada, Brazil and Austria.

Despite the lower level of capital investments in the pulp and paper industry, the Wood
Processing Division succeeded in keeping and even extending its good position in the
major markets of Northern and Central Europe, South America and the USA. While
Sales were at a lower level than in the previous year, due to a lower Order Intake in
previous quarters, the Order Intake in 2002 was well above last year’s level.
Major Orders
Complete The Division booked an order for a complete wood and chip processing installation
woodroom for from Celulosa Arauco y Constitución S.A. in Valdivia, Chile.
Arauco
The Division was selected by J.M. Huber Corporation, USA, to supply a wood hand-
ling system for a new Oriented Strand Board (OSB) facility to be built in Oklahoma, USA.
The system will consist of two complete debarking lines. Each line wil be equipped with
a LogPorter™ portal crane.
The Division’s groundwood processing expertise was impressively confirmed by an

order from Stora Enso Baienfurt GmbH & Co. in Germany for a woodyard and ground-
wood modernization project.

New Andritz A major R&D focus was the further development of the debarking process. The first
debarking installation of a new debarking concept, the Rotary Debarker, was started up in October
concept: Rotary 2002 in Canada.
Debarker
The Rotary Debarker was developed to meet the needs of the modern woodroom, by
effectively debarking logs of varying quality and even while frozen without deicing, while
minimizing wood losses. It reduces the required loading height, dampens noise, and
evens out variations in wood flow. The debarker allows for accurately controlled
throughput and debarking degree to meet customer needs without sacrificing fiber.
A 3D chip measurement prototype was tested in cooperation with the Andritz

Automation department. When combined with an existing Andritz automatic chip
sampling device, the on-line chip size information can be utilized for cooking
optimization and to support operating/maintenance decisions such as chipper knife
condition monitoring.
/ andritz 2002
24
Woodyard and chip handling
Pulp and Paper

plant for eucalyptus wood,
delivered to Aracruz Celulose
S.A., Brazil. The capacity of
the two chipping lines is the
largest in South America.
/ andritz 2002
25
Pulp and Paper
Kraft Mill Systems Division

The Kraft Mill Systems Division is one of the world’s market leaders in the supply of
Markku Hänninen systems, equipment, and processes for the production of chemical pulp, and in the
Helsinki, Finland recovery of chemicals used in the pulping process.
The products of the Division include continuous cooking systems, washers, screens,
bleaching systems, recovery boilers, evaporation plants, recausticizing equipment,
lime kilns, and effluent evaporators.
The Kraft Mill Systems Division is based in Kotka, Finland, with significant operations
in Alpharetta, Georgia, USA; Tokyo, Japan; Stockholm, Sweden; and Curitiba, Brazil.
The Division maintains research laboratories in Kotka, Finland; and Glens Falls, New
York, USA.

Order Intake Compared to the previous year, Kraft Mill Systems Division Sales were significantly lower
almost doubled in 2002 due to lower Order Intake in 2001. On the other hand, Order Intake in 2002
nearly doubled from the previous year.
Successful start- Some very significant projects were completed successfully in 2002. Among them was
up of fiberline for the new Fiberline C for Aracruz Celulose S.A., Brazil. This fiberline has the world’s
Aracruz highest single-line kraft pulp capacity and utilizes Andritz Drum Displacer™ (DD)
washers for washing and bleaching of the eucalyptus pulp. The Division also supplied
key items for the white liquor plant and lime kiln.
Also in Brazil, the start-up of the evaporation and white liquor plants for Votorantim
Celulose's Jacarei Mill occurred in 2002. This project is a significant expansion of
bleached eucalyptus pulp production.
Other start-ups of note during the year include Södra Cell's new recovery boiler at the
Värö Mill in Sweden, and new fiberline/recovery systems for Rizhao's greenfield kraft mill
in China. In the USA, fiberline equipment for MeadWestvaco and a complete fiberline
for Weyerhaeuser in Oregon are of particular importance - the Weyerhaeuser installation
featuring the first TurboFeedTM chip feeding system. TurboFeed eliminates some of the
mechanical equipment used in conventional feeding systems. As a result, capital and
operating costs are reduced.
The year 2002 also saw the start-up of a new Lo-Solids® continuous digester for Nippon
Paper in Iwakuni, Japan. The unit is designed to cook both softwood and hardwood.
Lo-Solids® Cooking conversions were also carried out on existing continuous digesters
for Chuetsu Nomachi and Nippon Paper Yufutsu mills in Japan.
/ andritz 2002
26
Pulp and Paper
Bleaching towers supplied

to Aracruz Celulose, Brazil, as part
/ andritz 2002
of Andritz’ EPC delivery of a 2,205

adt/d fiberline.
27
Pulp and Paper
Lo-Solids® Cooking employed in an Andritz continuous cooking system makes it

possible to reach optimum pulp properties for bleaching. It eliminates the negative
effects of organic substances dissolved in cooking liquor, which typically affect the
strength of the pulp and impair the bleaching response. At the same time, Lo-Solids®
Cooking reduces consumption of cooking chemicals.
Major Orders
Andritz to supply Andritz was selected to supply a new chemical recovery island to UPM-Kymmene's
largest chemical Wisaforest pulp mill in Pietarsaari, Finland, the largest in the world in terms of capacity.
recovery island Andritz’ scope will comprise: evaporation plant, recovery boiler, recausticizing plant and
worldwide lime reburning kiln. The chemical recovery system utilizes the latest technologies for
energy efficiency. When the chemical recovery plant of the mill is completed, it will
produce approx. 600 MW of steam and 140 MW of electricity from renewable natural
resources.
Andritz was chosen to supply chemical recovery systems for a greenfield pulp mill,
which will be built by Celulosa Arauco y Constitución S.A. in Valdivia/Chile. The scope of
supply includes a black liquor and sulphite liquor evaporation plant, the lime reburning
kiln, and a complete recausticizing system.
The contract for supply of a new chemical recovery island (evaporation, recovery boiler,
recausticizing, and lime kiln) for Zellstoff Stendal GmbH in Germany became effective in
2002. The systems ensure that the tightest environmental regulations can be met, thanks
to use of the most up-to-date technologies developed by the Andritz Group.
Andritz Vertical Andritz was also selected to deliver a new chemical recovery boiler to Soporcel,
Air™ System for Portugal. The boiler in the Setubal mill has a capacity of 2,400 tonnes of dry solids per
minimal sulphur day and utilizes combustion technology based on the Vertical Air™ system, developed by
dioxide and Andritz, which significantly reduces sulphur dioxide and nitrous oxide emissions.
nitrous oxide
emissions Research and Development
The main drivers for the current technology development programs in chemical pulping
are the following:
- to lower investment costs per ton of production through process simplification,

optimization, standardization or modularization, and by reducing consumption of
chemicals and wood.
- to improve product quality and strength of pulp through minimal fiber damage and
optimized solutions for end-user applications.
- to increase overall energy efficiency through better utilization of liquid and solid fuels:
producing more electricity and high-value process steam, simultaneously decreasing
the specific energy consumption of equipment.
/ andritz 2002
28
Pulp and Paper
- to improve environmental performance: lower emissions and reduction of effluents.
- to integrate process controls and optimization tools into the production machinery and
processes.
In the fiberline area, the main developments have been the further streamlining of
digester feed systems (TurboFeed™) and simplified cooking configurations (DownFlow
Lo-Solids® Cooking). In the remaining fiberline, efforts are focusing on the shortening
of bleaching sequences by combining several stages into one reactor and designing
equipment to perform multiple tasks.
Many of the solutions developed can be used for modernization purposes of the
installed base as well as in greenfield applications. Longer-term process research
includes the development of sulphur-free pulping and new bleaching chemicals and
stages. Many of these programs are conducted in close cooperation with customers
and in cooperation with research institutions and other suppliers.
In the recovery block, the main developments have been around the High Efficiency
Recovery Boiler (HERB). The ultimate goal is a considerable increase of the generation
of electricity. The first HERB boiler design is under delivery to Wisapower, Pietarsaari,
Finland. It will work at elevated temperature and higher steam pressure levels. Other
technologies for even better energy production are currently being developed.
Other essential elements are the further development of the Vertical Air™ system,
improved furnace processes, and advanced materials to accommodate the higher
steam temperatures and pressures. The first chloride removal system based on ash
recrystallization (ARC) is under delivery and will be started up in 2003.
Besides more efficient black liquor processing, the Division is also studying better ways
to utilize solid bio-fuels (bark, wood residues, etc.) in the chemical pulp mill.
/ andritz 2002
29
Pulp and Paper
Pulp Mill Services Division

The Pulp Mill Services Division supports the large installed base of Andritz equipment
Risto Hämäläinen for Wood Processing and Kraft Mill Systems all over the world, with the core of the
Savonlinna, Finland sales being obtained from North America and Europe.
Primary emphasis is on services such as engineered wear parts, replacement parts,

equipment rebuilds, technical services, and equipment upgrades for kraft pulp mills
and woodyards supplied by Andritz or other equipment suppliers.
Apart from traditional services, the Division also serves customers with its OPETM
(Overall Production Efficiency) program for continuous improvement and optimization
of entire production processes.
Headquarters for the Pulp Mill Services Division is Savonlinna, Finland. The Division
is managed through sales and service locations worldwide, providing fast and
responsive services to local customers. Production facilities for rebuilds are located
in Finland and the USA. Additionally, the Division offers rebuild services through
partner workshops in New Zealand, Indonesia, South Africa, Brazil, and Portugal.

The business progress of the Services Division was mainly influenced by the weak
development of pulp and paper markets in 2002. Sales and Order Intake in the reporting
year were approximately the same as in 2001, but showed different regional developments
especially where Order Intake is concerned. While the latter was significantly increased in
Central Europe, South America and the Asia-Pacific region, and kept nearly stable in
Nordic countries, it fell significantly in North America. This was due to consolidation/
closure of many older mills in the USA and Canada, as well as extreme cost-cutting
programs enacted by all major pulp and paper producers in the region. It wasn’t until the
last Quarter of the year that the service business showed signs of improvement in Northern
Europe and in the USA.
New service office In November, the Division established a new service office in Chile. Local rebuild
in Chile, partner- capabilities were improved in Southeast Asia with the introduction of a partnership with a
ship in Southeast high-quality workshop in Jakarta.
Asia
Major Orders
Several chemical recovery boilers were upgraded with the new Andritz Vertical Air™
technology: Carter Holt Harvey Ltd, Siam Pulp & Paper, and UPM-Kymmene. The
patented Vertical Air™ system creates optimum temperature and velocity profiles in the
recovery boiler, improving operational efficiency of the boiler and reducing emissions.
South American orders included rebuilding a debarking drum for Aracruz and a
satellite cooler replacement for a lime kiln for Cenibra, both in Brazil.
/ andritz 2002
30
Pulp and Paper
Andritz Pulp Mill Services ensure
that the right resources – skilled
people, proper tools and specialist
consultation – are available to
clients at any place, at any time.
/ andritz 2002
31
Pulp and Paper
Drum upgrades and rebuilds were performed for International Paper’s Svetogorsk Mill,
Metsä-Botnia’s Rauma Mill, UPM-Kymmene’s Kuusanniemi Mill and Domtar’s Ashdown
Mill.
Digester upgrades were ordered in North America and Finland. Crisobe Industrial in
Mexico ordered a digester shell replacement. The conversion of a digester for the kraft
cooking process was ordered by Georgia-Pacific, Camas Mill, USA.
Orders for lime kiln rebuilds at Georgia-Pacific’s Brunswick Mill and Interstate Paper’s
Riceboro Mill were booked.
An OPETM contract for digester service with P.T. Tel’s Musi Mill in Indonesia and a long-
term contract for recausticizing service with Metsä-Botnia’s Joutseno Mill in Finland
were signed.

In 2002, the Division concentrated its development efforts on improving the customer
interface in order to respond to customers' needs more efficiently.
The web-based Service Club was launched together with the Paper Mill Services
Division as an information platform for customers. Registered users of the Service Club
can track information related to the business between Andritz and the user’s company.
Some new service products were developed to minimize downtime in a mill: a faster
method of rebuilding debarking drums, an improved belt-pulley design for belt conveyor
upgrades, and further improvements to the HQ+ Knife system for chippers to improve
the reliability and to add more value for customers.
OPE™ Online The OPE™ Online Diagnostics system was further developed and successfully used in
Diagnostics connection with a JetScreen™ test run for the Metsä-Botnia, Joutseno Mill in Finland.
successfully OPE™ Online Diagnostics improves equipment reliability by producing valuable
installed information for operations personnel for preventive maintenance.
/ andritz 2002
32
Pulp and Paper

Mechanical Pulping Systems
Profile Division Manager:
The Mechanical Pulping Systems Division is one of the leading global suppliers of
complete systems for producing high-quality mechanical pulps for paper and board Humbert Köfler
makers and high-quality fibers for Medium Density Fiberboard (MDF) and Vienna, Austria
Particleboard (PB) producers.
The pulping technology is based on the proven RTS/TMP (Retention time,

Temperature, Speed) and APMP/P-RC (Alkaline Peroxide Mechanical Pulping /
Preconditioning Refiner Chemical Treatment) technologies. Equipment for pulp
dewatering, washing, drying, and high-consistency bleaching makes the Division a
comprehensive equipment supplier for mechanical pulping.
Complete dewatering and baling systems are offered for production of market pulp,
with capacities of up to 3,000 t/d.
The Division operates mainly through its headquarters in Vienna and Graz, Austria, as
well as its affiliates in Montreal, Quebec, Canada; Muncy, Pennsylvania, USA; and
Alpharetta, Georgia, USA. The acquisition of ABB’s drying business adds locations in
Växjö, Sweden; Kotka, Finland; and Montreal, Canada. The Division’s research
laboratory in Springfield, Ohio, USA is a completely equipped and independently
certified process research facility. In addition, dewatering and sheet drying pilot plant
work is performed in Graz on different pulps.

The Division’s business developed satisfactorily. Sales in 2002 were slightly reduced due
to the lower Order Intake booked during the previous year, during which not a single large
sheet drying system was awarded.
Order Intake, however, developed favorably. Despite the difficult market conditions, it Increase in Order
increased compared to last year. Intake
Major Orders
Mechanical Pulping
Stora Enso, Port Hawkesbury, Canada, placed an order to expand the production
capacity of existing RTS refining lines. With the expansion, Port Hawkesbury will have
the highest throughput of mechanical pulp for improved publication grades in the world.
Abitibi-Consolidated ordered a high-consistency peroxide bleach plant comprising

four 4.2 m twin-wire presses, a high consistency mixer and high-consistency bleaching
towers for its Alma Mill in Canada.
Solikamsk OAO, Russia, placed a follow-up order for a second TMP line, this time
based on Andritz RTS-TMP technology. This will enable the mill to reduce the chemical
pulp content in their newsprint as well as to minimize energy consumption.
/ andritz 2002
33
Pulp and Paper
Yueyang Paper Mill, China, ordered a complete woodyard and APMP/P-RC plant for
up to 350 admt of LWC paper per day.
Chilean board manufacturer CMPC ordered an additional RTS-TMP line to increase its
board making capacity. The order also included a high-consistency bleach plant and a
wet lap system.
Shandong Chenming, a fast-growing paper company in China, entrusted Andritz with

the supply of its first mechanical pulping system using the Andritz APMP/PR-C process,
for 180 admt/day of fine paper.
UPM-Kymmene’s Rauma Mill in Finland ordered additional dewatering equipment for

a capacity increase of the high-consistency bleach plant supplied by Andritz in 2000.
UPM-Kymmene’s Voikkaa Paper Mill in Finland and Stora Enso North America’s Biron
mill in the USA, invested in new post-bleach washing stages for their existing peroxide
bleach plants.
Lenzing AG, an Austrian dissolving sulphite pulp producer, selected the Division to
supply a twin-wire wash press for its brownstock washing expansion and quality
increase.
Sheet Drying
Two major orders were received from UPM-Kymmene in Finland. A pulp machine with
shoe press will be supplied to the Wisaforest mill and the Division will rebuild a pulp
machine at the company’s Kaukas Mill.
A dewatering system for flash drying was supplied to Zubialde, Spain, and started up
successfully.
Kruger of Canada ordered a wet lap system (consisting of a twin-wire press and cross
cutter) for its Bromptonville mill.
Panelboard
Due to its excellent reputation in the Chinese MDF market, the Division was selected
to supply the largest fiber production line ever installed in China, for Dare Wood
Industries. The scope is a complete "Front-End Package," consisting of woodyard
equipment, chip washing, and a pressurized refining system.
The Division also received its first order from Turkey for a pressurized refining system.
/ andritz 2002
34
Pulp and Paper
S3068-RTS/TMP refiner installation for

the production of improved newsprint
papers at Holmen Paper in Hallstavik,
Sweden. Two primary lines (17 MW
/ andritz 2002
each) increase production capacity and

reduce energy consumption.
35
Pulp and Paper

The Division is continuously focusing on process-oriented solutions to enable customers
to enter broader markets with mechanical pulps, minimize operating costs, and
environmental impact.
Development of patented basic processes continued jointly with customers. These

processes include: RT Pretreatment (a process to prepare wood chips), RTS (a process
to reduce refining energy consumption, and to improve fiber qualities due to precisely
controlled longer retention times for chips in the pretreatment stage, elevated
temperature and speed), and APMP/P-RC (process to optimize fiber quality while
reducing refining energy consumption). These processes are being applied to improve
fiber properties, reduce energy and chemical consumption, and obtain maximum yield
from raw materials.
In the area of MDF production, development work on new technologies and processes
for increased use of sawdust, responding to the requirements of fiberboard producers in
Europe, is under way. The goal is to obtain the highest quality of fibers at minimized raw
material and energy input.
Many customers are seeking to reduce the environmental impact of their bleaching
processes. Here, the Division’s R&D efforts are concentrated on reducing the use of
chemicals or on using chemicals with less environmental impact and the closure of
internal water loops to reduce the effluent load.
Another major driver to achieve productivity improvements is the need for increased
production capacity from proven technologies. This has led to the development of a
new screw press size capable of handling over 1000 t/d in a single line. The first press
of this size will likely start up in late 2003.
Aracruz pulp The new pulp dewatering line for Aracruz Celulose in Brazil set new world records for
dewatering line daily production (approximately 2,500 tons). The new target for R&D efforts is a 3,000
sets new world t/d single line.
records
/ andritz 2002
36
Pulp and Paper
The world's largest

twin-wire pulp
machine at Aracruz
/ andritz 2002
Celulose, Brazil, at 8 m
trim and a capacity of
approx. 2,500 admt/d.
37
Pulp and Paper
Fiber Preparation Systems Division

Division Managers: Profile
Fiber Preparation Systems is a new Division created in the course of the reorganization
Jarmo Häkkinen of the Pulp and Paper Business Area that combines the activities of Andritz and former
Kotka, Finland Andritz-Ahlstrom (now Andritz Oy) in the stock and recycled fiber preparation areas as
of July 1, 2002.
Christian Pedratscher
Graz, Austria Fiber Preparation Systems is a global supplier of systems, equipment, and services for
all papermaking processes such as recycled fiber processing, paper machine approach
systems, broke handling, internal water loop handling, and sludge and reject handling.
The Division works mainly through its sites in Kotka, Finland; and Graz, Austria; with
significant operations in Glens Falls, New York, USA.

The business development of the Division in 2002 was satisfactory in the light of the
difficult market conditions, with Sales and Order Intake decreased from the previous
year.
Major Orders
The Division was awarded several major reference orders shortly after its market entry:
New products The first turnkey deinked pulp (DIP) line was sold to Vipap Videm Krsko Proizvodnja
successfully Papirja in Celuloze d.d., in Slovenia. This order features several newly developed
launched technologies, e.g. the SelectaFlot TM
flotation cell, and the CompaDisTM disperger, which
will contribute to the quality of the complete line. In addition, Andritz will supply its
FibreFlow® drum pulper, coarse and fine screening, thickening with screw presses and
disc filters, cleaner plants, HC peroxide and MC dithionite bleaching stages, and
integrated water treatment.
UPM-Kymmene Shotton Paper, United Kingdom, ordered key packages for its new
deinking line, encompassing a FibreFlow® drum pulper, the world’s largest screw press
and a CompaDis™ disperging system. The new line at Shotton Paper will be the largest
single-line DIP installation with disperging in the world when it is started up in 2003.
Papiers Stadacona, Canada, placed an order for the first SelectaFlot™ deinking cell
to be installed in North America as well as for a FibreFlow® drum pulper and fine
screening system.
Shandong Bohui Paper, China, selected the Division for the supply of a deinking plant
and Holmen Peninsular, Spain, placed an order for dewatering and thickening
equipment.
/ andritz 2002
38
Pulp and Paper
UPM-Kymmene Shotton Paper (UK)
is constructing the world's largest
single-line deinking plant, with a
capacity of close to 1,000 t/d.
Andritz will supply the disperging
system, two sludge screw presses
and the largest screw press for pulp
dewatering ever built (shown), with
a screw diameter of 1.9 m and a
length of 10 m.
/ andritz 2002
39
Pulp and Paper
Hansol EME, a leading engineering company in South Korea, selected the Division to
supply a FibreFlow® drum pulper and coarse screening system for a new DIP line to be
installed at Sepoong Corporation in Kunsan, South Korea.
PT Aspex Paper, Indonesia, selected Andritz to provide the technology, detailed

engineering, and site services for a major rebuild of its DIP line. The supply includes a
new FibreFlow® drum pulper (the second FibreFlow® sold to PT Aspex), SelectaFlot™
flotation technology, CompaDis™ disperging, disc filter, and DAF micro-flotation.
Chinese customers Shandong Bohui Industrial Co. Ltd., and Shandong Tralin Paper
Co. Ltd. ordered complete approach flow systems for their paper machines.
The Division received orders for new stock preparation systems for tissue production
from WEPA in Germany and SCA Prudhoe in the United Kingdom.
Significant orders for sludge dewatering screw presses came from UPM-Kymmene in
the United Kingdom and in Finland, Vipap Videm Krsko, Slovenia, and Dongying Huatai
Paper Industry Co. Ltd., China.

Intensive efforts in the development of flotation, disperging, refining, and agitation led to
the launch of SelectaFlot™ flotation cell, CompaDis™ disperger, Papillon™ refiner and
TurboMix agitator.
Development of products and processes to increase pulp quality, improve operating

efficiency, and reduce energy input in applications for pulping, screening, and deflaking
will be introduced to the market shortly.
/ andritz 2002
40
Pulp and Paper
Tissue Machines Division

The Tissue Machines Division provides all types of tissue machines, including
CrescentFormers, Through-Air Drying machines and machines with the patented Rudolf Greimel
TissueFlex TM*)
shoe press. Ventilation and drying systems with high-efficiency hoods Graz, Austria
for tissue and other paper/board grades complement the product portfolio.
Andritz and Voith Paper are parties in a cooperation agreement for tissue machines.
The parties share know-how and conduct joint research and development. Andritz is
responsible for the production and sale of tissue machines in Asia, Europe, and
Africa. Voith Andritz Tissue LLC, a 50:50 joint venture of Andritz and Voith Paper,
supplies technology and related services to the NAFTA markets.
The acquisition of ABB Drying strengthens the Division’s competitive position in the
area of high-efficiency hoods for tissue machines, particularly in the North American
market.
The Tissue Machines Division is based in Graz, Austria, and has sites in Montreal,
Canada, and Janesville, Wisconsin, USA (Voith Andritz Tissue LLC).
*) Trademark of Voith Paper, cooperation partner of Andritz

The Division performed well during 2002. Sales decreased as a result of the lower Order
Intake in 2001, but the Division succeeded in boosting the Order Intake considerably
from the previous year.
Acquisition of ABB’s Drying business strengthens the Division’s position in the field of
high-efficiency Yankee dryer hoods for impingement temperatures from 300-700° C.
The ABB compact hood with integrated burner and recirculation fan extends the Andritz
product range with regard to large tissue and paper dryers. Its dryers for pulp and paper
in North America enjoy an excellent market position, and therefore this area is a good
complement to the existing activities of the Division.
During the First Half of 2002, the Division introduced the new Andritz PrimeLine™ tissue PrimeLine™
machine concept to its customers. PrimeLine TM
provides enormous flexibility in tissue machine
producing custom-tailored tissue grades and responds to the most stringent quality and concept
performance requirements. It is specially developed for making extra-soft paper and successfully
answers the trend toward high tissue product quality. introduced
Two CrescentFormer tissue machines installed by Andritz at APP/Gold Hong Ye's

Suzhou mill in China in 1998 achieved new speed records as a result of the optimization
by an Andritz Service Team. After installation of PrimePickup™ in the CrescentFormers,
both machines ran at record speeds of 2,020 m/min (TM2 producing facial tissue) and
2,000 m/min (TM1 with toilet paper).
/ andritz 2002
41
Pulp and Paper
A new tissue machine for Hengan Changde Paper Products, Hunan Province, China, the
second tissue machine from Andritz, was successfully started-up. It reached its
maximum operating speed of 1,800 m/min after only a few weeks, producing marketable
tissue paper right from the start.
A dust removal system for the tissue machine at Werrapapier Wernshausen GmbH,
Germany was started up and achieved the guaranteed values from the very first day. At
Papierfabrik Rieger GmbH, Trostberg, Germany, the machine and hall ventilation
equipment for a board machine was also started up successfully.
Major Orders
Tissue machine SCA Tissue North America LLC, USA, ordered a wet-crepe tissue production line from
for SCA Tissue Voith Andritz Tissue LLC. Most of the components for the new machine will be
North America produced in Graz. The new machine will be installed in Alabama, USA. The line is
scheduled to start-up in early 2004.
German tissue paper producer WEPA selected the new Andritz PrimeLine™ tissue
machine. The new machine for WEPA is the second complete line ordered from Andritz,
following the PM8 installed in 1996. It will be erected at WEPA’s mill in Kriebethal,
Saxony, Germany. The PM9 is equipped with a TissueFlex™ shoe press and a
PrimeDryTM T-rib Yankee dryer for the highest production flexibility. It also features an
Andritz 700°C EquiDry S high-efficiency hood and the new PrimeReel™ with linear
primary and secondary arm. Andritz will also supply the proven stock preparation
system for the new two-line pulp preparation, with approach system, fiber recovery, and
broke treatment.
Renova S.A., the largest tissue manufacturer and converter in Portugal, ordered a
major modernization of its PM5 at the Torres Novas Mill to increase production capacity,
improve product quality, and reduce gas consumption.
Another tissue machine modernization order was placed by Gomà-Camps S.A., of La

Riba, Spain. The modernization will increase machine speed and consists of an EquiDry
F hood with recirculation system and a PrimeControl™ system - the newly-developed
Andritz control system for the complete tissue line. This order is a follow-up to a
complete Andritz CrescentFormer tissue machine supplied to Gomà-Camps in 1998.
German company Gebr. Grünewald Papier based in Kirchhundem-Hofolpe, manu-

facturer of machine-glazed baking and packing papers, ordered a high-temperature
EquiDry F hood, which will replace the steam-heated hood supplied by Andritz in 1976.
Grünewald’s main goal is to achieve noticeable improvements in production and energy
efficiency. This modernization will make the machine one of the highest-performing MG-
paper machines in Europe.
/ andritz 2002
42
Pulp and Paper
Tissue machine delivered to Hengan

Changde Paper Products in China.
/ andritz 2002
In 1998, Hengan purchased its first

tissue line from Andritz.
43
Pulp and Paper

Advancement of Research and Development efforts in the Tissue Machines Division were aimed at
Andritz Through- completing the Andritz Through-Air Drying technology (Andritz Prime TADTM) combining
Air Drying the air technology knowledge of Andritz and the recently purchased ABB Drying.
technology
Other focused R&D activities concerned improvement of PrimeLine™ tissue machine
components. The development of the new Andritz Centerwind reel for winding up
especially bulky tissue papers uniformly and carefully has been finalized.
In addition, the Tissue Machines Division has been intensively working on developing
new service business products, such as the PrimePickup™ suction box for
CrescentFormers to improve the machine runnability especially at high speeds, and
Yankee dryer condition analyses.
/ andritz 2002
44
Pulp and Paper

Paper Mill Services Division
Paper Mill Services encompasses the service activities for the Mechanical Pulping
Systems and Fiber Preparation Systems Divisions. Primary emphasis is on traditional Sergio Torza
mill service (engineered wear parts, equipment rebuilds, and upgrades) to existing Muncy, Pennsylvania,
customers. The two major wear parts are refiner plates and wedgewire screen USA
baskets, which are manufactured in Andritz’ own plants to proprietary designs.
Additionally, the Division is offering innovative solutions for increasing the reliability,
efficiency, and availability of machines and systems used in the paper industry.
Process and mechanical audits of total operating plants are the basis of future
upgrades provided by the Division.
Headquarters for the Paper Mill Services Division is Muncy, Pennsylvania, USA. The
Division is managed through major geographic regions, each with at least one Andritz
Service Center equipped to provide fast and responsive services to local customers.
Production of refiner plates is performed in Muncy, Pennsylvania in the USA, while
production of screen baskets is performed in Brantford, Ontario, Canada.

Both the Sales and Order Intake by the Division experienced a decrease in 2002, with
different regions affected uniquely. Some growth was achieved in Northern Europe, but
declines from the previous year came from the North American region.
Refiner plate sales showed a moderate increase over 2001 due to the improved market
for newsprint, especially in Northern Europe.
Major Orders
The string of innovations introduced to the market enabled the Division to secure
several orders, among which was a large APMP rebuild for Millar Western in Canada, a
complete service order for the refiners at Hallstavik’s mill in Holmen, Sweden, and
several rebuild orders for disc filters in UPM-Kymmene mills (Kajaani, Voikkaa, and
Kymi), Stora Enso’s mill at Kotka, Finland and for Australian and US customers.
Cartiere di Cadividad, Italy, entrusted the Division with a modernization contract for a
headbox screening system. Three single screen lines will be converted into a four-stage
screening system. Andritz FiberSentryTM screen baskets and special rotors will be
installed to increase screening performance.
/ andritz 2002
45
Pulp and Paper

New LemaxX- In 2002, Andritz-Durametal introduced several new proprietary products such as the
Spiral® refiner LemaxX-Spiral® refiner plate for low-consistency refining applications where uniformity
plate successfully of refining action is very important. These plates have spiral bars, which assures that the
launched angle of incidence between the wood fiber and the refining bar stays constant across the
refining zone.
With the goal of achieving further production process improvements, several new
techniques for system optimization were investigated, and a joint pilot project with a
large paper company was initiated. This project features use of neural network
technology to simulate a complete TMP system on the basis of installed sensors. The
customer need not make any additional investment. The objective is to attain complete
documentation on the best mode to operate a plant and to adjust the production
processes and the control systems accordingly. Any improvements to the process
equipment can be evaluated in this manner.
/ andritz 2002
46
Pulp and Paper
FiberSentry™ screen baskets offer superior
basket strength with high slot precision, and
in combination with Andritz rotors provide
unmatched screening performance.
/ andritz 2002
47
Push pickling line for carbon steel with
silicon separation, supplied to EKO
Eisenhüttenstadt, Germany. The plant
comprises coil transport, mechanical
equipment for inlet and outlet, and the
complete chemical treatment section.
/ andritz 2002
48
Rolling Mills and
Strip Processing
Lines
/ andritz 2002
49

Manager: The Rolling Mills and Strip Processing Lines Business Area designs and builds
complete lines for the production of cold-rolled carbon steel, stainless steel and non-
Peter Gravert ferrous metal strip. These lines consist of equipment for cold-rolling, surface
Vienna, Austria processing, strip finishing, and acid regeneration. The know-how and proprietary
equipment is developed in-house and manufactured at the company’s own
manufacturing shops.
The Andritz Group is the only supplier to provide all technologies and processes
involved in the manufacture of stainless steel strip (rolling, annealing and pickling) on
a comprehensive basis and can supply all the production systems through a single
source. This ensures minimized interfaces and takes the interdependencies of the
overall process into account.
The acquisition of the furnace technology section from SELAS SAS, France, in
October 2002, has added continuous hot-dip galvanizing and strip annealing systems
to the Andritz portfolio. This enables the Company to offer complete systems for the
two common processes for continuous galvanizing of steel strip: hot-dip and
electrolytic galvanizing.
The Rolling Mills and Strip Processing Lines Business Area operates through the
following companies: Andritz AG, Austria; Andritz-Ruthner Inc., USA; Thermtec,
Netherlands; Sundwig GmbH, Germany; Andritz Selas SAS, France; Andritz
Technologies Pvt. Ltd., India; and Andritz GmbH, Germany.
Market development
Varied market The development of the international market for flat steel products (steel and stainless
development steel) was quite varied over 2002.
As a result of import restrictions imposed by the USA and a slight rise in demand that
came in the wake of the economic recovery, prices were seen to rise in nearly all product
categories during the First Half of the year. Especially in the stainless steel sector,
producers were able to push prices due to strong demand in China and the USA. Over
the Second Half, however, the international steel market weakened again, and, contrary
to predictions by economic research institutes, prices began to erode on account of the
economic recovery cooling off all over the world. This led to a general reluctance on the
part of global steel producers to make capital investments. Increased project activity was
noticeable only in China, where Andritz has an excellent market position.
In spite of the generally moderate market and overall economic development, steel
consumption increased between 4% and 5% in 2002, to 802 million tonnes, mostly due
to the dynamic growth in China, where demand soared by nearly 15% compared to the
previous year. China now accounts for almost 25% of global steel consumption, and
during the coming years, this trend can be expected to continue. For the other countries
in Asia, the rise was about 3%. In Europe (+0.4%) and the NAFTA region (+1.4%) the
/ andritz 2002
increases were only minor.
50
The stainless steel market had seen growth of between 5% and 7% over the past few Satisfactory
years, exceeding the growth rates of the general steel market, and continued its above- development of
average development in 2002. Especially in China, the largest buyer market for stainless stainless steel
steel, the demand rose again quite dynamically. market

The Rolling Mills and Strip Processing Lines Business Area developed very favorably Sales reach
during the year under review. Sales reached a record level (177.4 MEUR), which record level,
corresponds to an increase of 6.0% over the previous year (167.4 MEUR). Earnings and
profitability
Earnings and profitability also developed exceptionally well. EBITDA rose by 27.6% to improved
11.1 MEUR (2001: 8.7 MEUR), the EBITDA margin to 6.3% (2001: 5.2%).
The Business Area achieved a satisfactory Order Intake for 2002. At an amount of 175.7
MEUR, it was just 10.5% below the record value of the year before, 196.3 MEUR.
Production systems delivered to SKS Shanghai Krupp Stainless, China - consisting of a

bright annealing, slitting, cutting, and grinding line - were successfully commissioned
and passed acceptance tests.
The plants supplied to Baosteel, China (ELO galvanization), ThyssenKrupp, Germany

(hot-dip galvanizing, slitting and push pickling line), NLMK, Russia (equipment for hot-
dip galvanizing), Harada, Japan (4/S6 rolling mill), First Copper, Taiwan (20-high rolling
mill), CSSSC, also in Taiwan (20-high rolling mill), and EKO Eisenhüttenstadt, Germany
(push pickling line with silicon separation), were also successfully handed over to the
customers.
Key figures for the Rolling Mills and Strip Processing Lines
Business Area according to IAS
MEUR 2002 2001 2000 1999
Sales 177.4 167.4 169.1 140.8

Order Intake 175.7 196.3 130.2 141.9
Order Backlog 31.12. 154.0 159.2 141.2 180.2
EBITDA 11.1 8.7 8.7 7.5
EBITDA margin 6.3% 5.2% 5.1% 5.3%
EBITA 8.5 6.1 6.4 5.7
EBITDA margin 4.8% 3.7% 3.8% 4.0%
/ andritz 2002
Employees 642 562 522 551
51
Major Orders
Andritz’ worldwide reputation as an equipment supplier to the stainless steel industry
was successfully underlined with orders received from Baoxin in Ningbo, China (20-high
rolling mill, levelling line and reconstruction of a skin-pass mill), Tisco, China (slitting line)
and North American Stainless, USA (chemical strip treatment section for a stainless steel
annealing and pickling line).
With the order bookings from NLMK Novolipezk, Russia, and voestalpine, Austria, the
Business Area was also able to underline its market position in heavy-duty color coating
lines.
The Business Area´s Order Intake furthermore included bookings from Thyssen,
Germany (reconstruction of a strip coating line), Corus, Netherlands (reconstruction of a
slitting line), VAW Grevenbroich, Germany (levelling line), and NLMK, Russia (trimming
line and reconstruction of a repair line).
Rome Strip, USA, ordered a two-high rolling mill, one of the few orders that were placed
in the United States in 2002.
Hydrochloric acid regeneration plant orders with integrated pickling bath cleaning
included: an order from Baosteel, the fourth in a row, Handan, the second in a row, and
Maanshan, all of them in China. POSCO, Korea, ordered a mixed-acid regeneration
(Pyromars) plant, the second in a row in this case.

Research and Development programs received a high priority in 2002. The first
regeneration system based on advancement of the Pyromars process was placed in
operation. EKO Eisenhüttenstadt, Germany, successfully started a silicon separation
unit, a new development, which is used for high-silicon waste pickling acid.
Other R&D projects related to optimization of actuators used to control the roll gap
contour in various rolling mills (four-high, six-high, 20-high).
Process optimizations were carried out for Andritz levelling lines and for strip coating
systems, in which field computer simulations of process run sequences are conducted
in order to improve system integration.
/ andritz 2002
52
Hot-dip galvanizing plant FBA 8,

supplied to ThyssenKrupp Stahl AG in
Dortmund, Germany. Production is
450,000 t/year. Strip thickness ranges
/ andritz 2002
from 0.3 to 1.5 mm and width from 800

to 1,650 mm.
53
Plant for sewage sludge drying,
supplied for the Greater Glasgow
Solution Project in Scotland. The plant
comprises 12 dewatering centrifuges
and 6 drying lines.
/ andritz 2002
54
Environment and
Process
Technologies
/ andritz 2002
55

Managers: The products of the Environment and Process Technologies Business Area cover the
entire range of technologies for mechanical and thermal treatment of sludge from
Olaf Jansen municipal and industrial sewage treatment plants. Andritz is one of the global leaders
Johannes Kappel in this field and offers comprehensive support from design to manufacture of key
Graz, Austria components; erection, and start-up of complete sludge treatment plants, including
automation and safety engineering.
Industrial process technology is another important sector for the Business Area.
Andritz supplies filtration systems (belt presses, centrifuges, hyperbaric drum and disc
filters, and different types of vacuum filters), especially for coal and mineral
suspensions. In addition, Andritz addresses applications in the pigment and filler
industry with its heavy-duty centrifuges and belt presses.
The Business Area’s extensive product portfolio in industrial and municipal solid/liquid
separation is supplemented by a large range of screens, sieves, and sand filters,
offering Andritz´ customers technical solutions for nearly all applications.
The Business Area operates through its headquarters, Andritz AG, Austria, and the
following affiliates: Andritz-Ruthner Inc., USA; Andritz GmbH, Germany; Andritz-
Guinard S.A.S., France; Andritz Ingeniería S.A., Spain; Andritz Technologies Ltd., China;
Andritz Ltd., Great Britain; Andritz Pty Ltd., Australia; Andritz Singapore Pte Ltd.,
Singapore; and Andritz 3Sys AG, Switzerland. Production facilities for machines and
components are located in Graz, Austria; Châteauroux, France; Pittsburg, Texas, USA;
and Foshan, China.
Market development
Good project In 2002, the market for equipment and systems for municipal sewage and sludge
activity in the treatment underwent a dynamic development for Andritz Environment and Process
USA, Southern Technologies. Especially in the USA, Southern Europe, and Asia, there was brisk project
Europe and Asia activity. The market for large systems in the United States has recovered. Increasing
demand is also noted from Eastern Europe, not only among the EU membership
candidates, but also from Russia and other CIS countries.
In Western Europe, the more stringent legal requirements for depositing sewage sludge
have caused plant operators to make capital investments in treatment systems for
sewage sludge and thus, have brought about a heightened demand for products from
this Business.
The project activity in industrial process engineering was seen to increase slightly,
particularly in the mining industry. The demand for equipment in the paper industry
remained subdued.
/ andritz 2002
56
Environment and Process Technologies Sales decreased in comparison to the previous
year by 9.2% to 122.8 MEUR (2001: 135.3 MEUR). This decline is mainly attributable to
the many projects that were only in their starting phase in the business year and will not
have an effect on Sales until later.
Earnings development was not satisfactory. Due to the slight decline in Sales and to cost
overruns on some large projects, EBITDA declined markedly to 2.8 MEUR (2001: 9.0
MEUR). Profitability expressed as EBITDA margin was 2.3%, compared to 6.7% in 2001.
With regard to the cost overruns, it should be noted that the projects handled in 2002
were successfully accepted by the customers. The Business Area has made sufficient
reserves for claims – which are offset by claims on the part of Andritz – that the general
contractors for the projects may make, and the matter is expected to be finally concluded
in the course of 2003.
Order Intake by the Business Area reached 147.7 MEUR in 2002, a record level (2001: Order Intake
140.6 MEUR). reaches record
level
Key figures for the Environment and Process Technologies

Business Area according to IAS
MEUR 2002 2001 2000 1999
Sales 122.8 135.3 133.2 97.3

Order Intake 147.7 140.6 118.6 123.6
Order Backlog 31.12. 122.6 99.7 96.3 110.8
EBITDA 2.8 9.0 5.9 1.5
EBITDA margin 2.3% 6.7% 4.4% 1.5%
EBITA 1.0 7.2 4.0 -0.5
EBITA margin 0.8% 5.3% 3.0% n.sp.
Employees 439 435 421 396
/ andritz 2002
57
Major Orders
Success in the In the year 2002 the Business Area was extremely successful with its 100% US-
USA affiliate Andritz-Ruthner Inc. The City of Honolulu, Hawaii, USA, via Synagro
Technologies Inc., ordered a turnkey sludge treatment system from Andritz, which
comes as part of the implementation of its new waste management concept. The
system will comprise two Andritz–Guinard centrifuges and a DDS drum drying line. By
drying the sewage sludge, Honolulu wants to save valuable landfill space and produce
a high-value fertilizer, which Synagro will market.
Andritz will also supply two D7LL centrifuges and a DDS drum drying system for
Sacramento Regional County Sanitation District, California, USA.
Andritz to supply The Business Area has been successful in the French market as well. The only large
dewatering and order awarded in 2002 for several dewatering and drying lines was awarded to Andritz:
drying lines to Syndicat Interdépartemental pour l’Assainissement de l’Agglomération Parisienne
Paris (SIAPP), Valenton, the water company for the Greater Paris Area, will receive three
Andritz DDS 70 drum drying lines, which will evaporate 7,000 liters of water per hour, and
five large D7LL centrifuges. The major factors in selecting Andritz were the impressive
installed base of large sludge drying plants as well as the strong local presence of
Andritz in France.
Andritz was furthermore able to book an important order from Slovenia, including a
PowerDrain system for sewage sludge thickening, two Andritz-Guinard centrifuges for
sludge dewatering and a DDS drum drying system for the new waste water treatment
plant in Ljubljana.
Successful start Andritz 3Sys AG, a newly established affiliate in Switzerland, had a particularly
of Andritz 3Sys successful start, building and commissioning an industrial size pilot unit from the new
belt dryer (BDS) series.
In drying applications for industrial sludges, a fiber sludge drying installation was
successfully taken into operation and accepted after a delivery period of only 10 months
at Papeterie de Voiron, Usine de Voreppe, France.
For the Blue Plains Wastewater Treatment Plant in the US capital, Washington, DC,
Andritz will supply 13 Aqua-Screens for the fine screening of raw sewage.
Three large D7LL centrifuges were sold to King County South Wastewater Treatment
Plant, Renton, Washington. Other major bookings came from Santiago de Chile (five
D7LL machines), Rome and Florence with a total of nine units, and Lyons (four
centrifuges). The orders for the new, large-decanter series came as a consequence of
successful side-by-side trials on site.
/ andritz 2002
58
Andritz Technologies Ltd., a newly established affiliate in Foshan, China, received
orders for several belt presses and thickeners. Three D6L centrifuges were ordered for
the new large sewage treatment plant by the city of Guangshou, China.
ZOF Kuzbasskaja, Russia, ordered a Hyperbaric Filter with 120m2 filter area for the
Kuzbass, region in Siberia. It will work on finest-grain coal concentrate. A decisive
reason for the order was that the expensive thermal drying system can be shut down
because of the filter, and in addition, old lagoon sludges can be treated. This increases
the amount of recycled, sellable coal and reduces the filtrate load.

The performance range of the standard drying equipment was extended both upwards New belt dryer
(up to 20 t/h evaporation rate for fluidized bed dryers) and downwards (starting with 500
kg/h for belt dryers). The newly developed belt dryer can operate with low-temperature
waste energy sources, such as hot water, low-pressure steam, or off-gas.
Given the coming into force of the ATEX guideline for safety standards of non-electric
units in mid-2003, the safety engineering aspects of thermal plants were revised in 2002,
and the new requirements were met.
/ andritz 2002
59
Two Sprout-Matador fish feed extrusion
lines at Dana Feed A/S, Denmark, a
member of the Provimi group of
companies.
/ andritz 2002
60
Feed Technology
/ andritz 2002
61
Feed Technology

Managers: The Feed Technology Business Area is one of the world market leaders in developing
and building systems, machines, and processes for the industrial production of
Finn N. Jensen animal feed (mixed feed, pet food, and fish feed). This comprises complete feed mill
(Sprout-Matador) lines as well as unit equipment for grinding and mixing of raw material for feed
production, expanding, pressing, extruding, cooling, vacuum coating, and drying.
David Billingsley
(UMT) The Business Area also supplies equipment and plants for industrial production of
biofuel pellets, as well as pelleting systems for recycling industries.
Due to extensive innovations and continuous investments in R&D, the Business Area
offers customized system solutions, including automation, for all aspects of feed
manufacturing, as well as wood and waste pellet production.
The aftermarket business – spare and wear parts and service – forms an important
portion of the activities of the Business Area. In the field of pellet mill dies and rolls,
the Business Area is the clear global market leader.
The Feed Technology Business Area operates primarily through Sprout-Matador,

Denmark; Andritz Inc., USA; and UMT, Netherlands. It has production facilities in
Denmark, the USA, and the Netherlands.
In total, the Business Area is established with 14 proprietary sales offices and a
number of service offices. In addition, it has a network of distributors and agents in
many other countries of the world.
Market Development
Moderate market In conjunction with the slight improvement in global economy, the global feed market
growth underwent moderate growth in 2002. In the areas of conventional (mixed) feed and special
feed (pet, fish and aquatic feed) there was satisfactory project activity overall, although with
vast regional variations. Several projects were awarded in Northern and Eastern Europe,
but Central Europe and South America were relatively weak in development.
The conventional feed industry invested in efficiency and flexibility of system technology.
Rarely were there investments to increase the capacity of existing equipment.
There continued to be an overcapacity situation in the production of salmon feed, especially

during the Second Half of the year. As a consequence, many projects were postponed into
2003. However, there is a general trend for manufacturing lines featuring especially large
capacities.
Growing demand In the area of biofuel production, the market activity has been high for wood pelleting
for biofuel equipment, with rising demand through the year in Northern and Eastern Europe and North
pelleting plants America.
/ andritz 2002
62
Feed Technology
The Sales and Earnings development of the Feed Technology Business Area was
satisfactory. Despite the difficult market conditions, especially in North and South
America, the Business Area succeeded in increasing its Sales slightly versus the
previous year (108.4 MEUR, +1.3% compared to 107.0 MEUR in 2001).
Earnings progressed at an above-average rate. Due to restructuring measures that had Earnings
been implemented at production sites in North America and England, as well as the progressed
successful integration of UMT, Earnings and profitability (EBITDA margin) clearly favorably due to
improved compared to the previous year. EBITDA increased 29.8% to 6.1 MEUR (2001: successful
4.7 MEUR), profitability expressed as EBITDA margin reached 5.6% (4.4%). The most restructuring
marked Earnings increase was achieved by the UMT Group purchased in 2000.
Comprehensive restructuring will continue into 2003, with the goal of optimizing
production capacity. This should lead to increased competitiveness throughout 2003
and beyond.
During the year under review, several process lines for new pet food and aquatic feed
plants were handed over and successfully commissioned, of which the following is worth
mentioning: a complete extrusion line comprising the Multimill 1400 fine grinder, the
Ex1250 extruder including the ECS™ expansion control system, the CZD Multizone
dryer, and the VAC vacuum coater, which was successfully placed in operation in
Provimi's new fish feed factory in Alitec, Chile.
Key figures for the Feed Technology Business Area according to IAS
MEUR 2002 2001 2000 1999
Sales 108.4 107.0 67.8 59.6

Order Intake 104.7 112.6 70.7 53.5
Order Backlog 31.12. 23.5 27.6 14.3 11.5
EBITDA 6.1 4.7 4.6 0.6
EBITDA margin 5.6% 4.4% 6.8% 1.0%
EBITA 4.2 0.9 2.4 -1.4
EBITA margin 3.9% 0.9% 3.5% n.sp.
Employees 609 676 412 408
/ andritz 2002
63
Feed Technology
Major Orders
The most significant orders for the Business Area were four large feed mill rebuild and
expansion projects in the UK, Scandinavia, and Eastern Europe. In addition Andritz will
deliver two full process lines for highest capacities including all key equipment, the liquid
addition units, and controls for a new feed plant project in Denmark.
From the aquatic feed sector, a large order for a Norwegian salmon feed project was
booked.
Orders for several medium-capacity extrusion lines were received from Asia.
Orders for wood Several large orders were won from the wood pelleting sector in North America and
pelleting plants Northern and Eastern Europe. A large order for six wood pelleting lines received from
Skellefteå Kraft in Sweden helped to consolidate the very strong position of the Andritz
Feed Technology Business Area in this market segment.

The research and development activities of the Business Area in 2002 were focused on
completion of the intensive new product development programs which had been started
over the past three years. All products and processes – a new generation of pellet mills,
hammermills, and extrusion line equipment, including advanced control systems – have
successfully been placed in operation in several installations during the year.
Smaller R&D projects targeting increased process flexibility and process data evaluation
and communication were initiated for completion during the First Half of 2003.
The extrusion test center, which opened last year, has been used by several large
international pet food and aquatic feed producers.
/ andritz 2002
64
Feed Technology
Sprout-Matador pellet mills offer
superior pelleting performance and
quality as well as optimized machine
control.
/ andritz 2002
65
Runner of a vertical Kaplan turbine during
workshop assembly. The runner was delivered
to Edling power station of Österreichische
/ andritz 2002
Donaukraftwerke; its diameter is 5.6 meters

and the maximum output 44,480 kW.
66
Other Operations /
Hydraulic Machines
/ andritz 2002
67
Other Operations / Hydraulic Machines

Manager: Other Operations encompass Andritz Group activities such as the development,
planning, and manufacture of water turbines, large-scale pumps for selected
Manfred Wörgötter applications, pumps for the primary and secondary loops in nuclear power stations,
Graz, Austria centrifugal pumps for the pulp and paper industry, as well as space technology
components.
The main markets are Europe, China and certain countries in Southeast Asia.
Market Development
The difficult market conditions for the Business Area’s main product, water turbines,
remained unchanged in 2002. There were only a few modernization projects, and some
single larger repair orders and service projects. In new investments, the so-called mini-
power sector, involving projects for a maximum capacity of 10 megawatts, saw a minor
revival, but the price pressure in this sector remained quite considerable.
Chinese customers were quite prepared to make investments, so project activity in this
area was fairly brisk, with some turbine projects looking quite promising.
Geographically varied development was characteristic of the stock pumps business for
the pulp and paper industry. The European markets’ moderate progress, with hardly any
new project awards, was contrasted by high project activity in China.

Favorable Other Operations underwent a favorable development in 2002. Sales increased by
business 12.7% to 29.3 MEUR (2001: 26.0 MEUR). EBITDA was more than trippled (7.4 MEUR
development compared to 2.3 MEUR for 2001). Along with this development, profitability expressed
as EBITDA margin rose to 25.3% (2001: 8.9%).
Key figures for Other Operations according to IAS
MEUR 2002 2001 2000 1999
Sales 29.3 26.0 22.7 29.5

Order Intake 28.3 28.6 26.8 21.2
Order Backlog 31.12. 21.5 22.6 20.3 16.2
EBITDA 7.4 2.3 5.3 3.6
EBITDA margin 25.3% 8.9% 23.3% 12.2%
EBITA 5.8 -0.1 3.9 0.8
EBITA margin 19.8% n.sp. 17.2% 2.7%
/ andritz 2002

Employees 277 246 230 240
68
Order Intake at 28.3 MEUR was about equal to the good level achieved in 2001 (28.6
MEUR). Much of the Order Intake was due to the service business which primarily
consists of rebuilds and modernization jobs for water turbines and turbine controls as
well as spare parts supplies for nuclear power stations and stock pumps for the pulp and
paper industry.
At the end of March 2002, the first turbine set (vertical Kaplan turbines) for Großraming
hydropower station on the river Enns, Austria, was placed in operation successfully and
as scheduled.
The axial-flow pumps for Hong Kong drinking water supply passed the test runs at
Andritz’ contract partner in Shenyang, China; they are currently being installed.
Stock pumps for the pulp and paper industry were again a very successful Andritz Andritz-Kenflo
activity in 2002. The 60:40 Joint Venture, Andritz-Kenflo in Foshan, China, succeeded extends its lead in
in increasing the number of stock pumps sold significantly compared to 2001 and thus, Chinese market
in further extending its leading position in China.
Major Orders
Orders for key components for turbine equipment in different installations (Shapotou,
Jin Yin Tai and Meng Li) were received from various customers in China.
Austrian Hydro Power placed an order for the construction of a butterfly valve for the
penstock of Maiskogel power station.
Six further DAAR ring units were supplied for Ariane 5 launcher rockets.

Together with ASTRÖ (Anstalt für Strömungsmaschinen), research activities were Focus on
resumed and intensified in the field of hydraulics development. By developing peak hydraulics
hydraulics with efficiencies higher than in competitive products, it was possible to reap development
a large number of orders for the newly developed headbox pump shortly after launching.
Further intensive work on other product innovations is currently under way.
Product improvements in the area of the hydraulics of Kaplan bulb turbines were
achieved thanks to intensified research and development work, and their success was
corroborated by several contracts received from various customers in China.
Major further developments focused on shaft seals, in the effort to strengthen the
services business for nuclear power stations.
/ andritz 2002
69
Andritz Shares
Share Price Development

Andritz Shares The Andritz Share price developed satisfactorily during 2002, despite the general
outperform ATX downturn on international financial markets. The price of Andritz shares increased 7.9%,
considerably outperforming the ATX of the Vienna Stock Exchange, which gained 0.85%
over the same period.
The highest closing price in 2002 was 28.00 Euros (April 24 and 25, 2002), the lowest
was 19.40 Euros (February 4 and 5, 2002).
Trading Volume
The average daily trading volume during the business year 2002 was 13,255 Andritz
shares or 308,806 Euros.
Andritz Shares rank 21st place in the 2002 turnover statistics of the most actively traded
stocks on the Vienna Stock Exchange. The market capitalization of Andritz based on the
closing price at year end (December 30, 2002: 22.99 EUR) was 298.9 MEUR.
Inclusion in the Prime Market and ATX

Since January 1, 2002, Andritz Shares have been quoted in the top segment of the
Vienna Stock Exchange, the Prime Market, and have been part of the ATX since
January 21, 2002.
Share Buy-Back Program

The 95th General Meeting of Shareholders of Andritz AG held on April 17, 2002,
authorized Andritz AG’s Managing Board to buy back shares to a maximum value of
10% of the share capital over a period of 18 months.
Andritz Ownership Structure Ownership Structure by Region

(December 31, 2002) (Estimate by Andritz)
UIAG, Univest GE Capital ~6%

~13%
Deutsche Others ~10% Germany ~8%
Beteiligungs AG ~6%
Free float Italy ~3%
~16% UK ~8% Austria ~50%
Others ~3%
/ andritz 2002
Certus ~25% Carlyle ~31% Switzerland ~16% France ~5%
70
Andritz Shares
30 €
Share price
development of
28 €
Andritz since
IPO
26 €
24 €
22 €
20 €
18 €
06/01
07/01
08/01
09/01
10/01
11/01
12/01
01/02
02/02
03/02
04/02
05/02
06/02
07/02
08/02
09/02
10/02
11/02
12/02
Andritz AG Managing Board decided to make use of this authorization. Up to 5% of the
share capital of Andritz AG is open for buy-back between May 16, 2002 and June 27,
2003, corresponding to a maximum of 650,000 shares within a price range of 10 and 35
Euros per share.
The share buy-back program is to improve the supply and demand for Andritz Shares on
the Vienna Stock Exchange and the potential use for the current stock option program
for Andritz Group management.
The transactions made under the share buy-back program are published on the Andritz
website (www.andritz.com).
Stock Exchange Award 2002 and PIROL 2002

In October 2002 Andritz received the Stock Exchange Award for 2002. This award is Andritz receives
conferred annually by the Austrian Association for Financial Analysis and Asset Stock Exchange
Management (ÖVFA) and is based on an assessment of the Investor Relations activities Award
of publicly listed companies. The assessment criteria include the depth of information
and transparency of Annual and Quarterly Reports, the accuracy of the Earnings
forecasts, competence and availability of the Investor Relations contact, and corporate
strategy.
Andritz was also the winner of the PIROL Award (Prize for Investor Relations Online).
The websites of publicly listed companies in Austria are assessed in terms of content,
technical viewpoint, and service offer from the perspective of investors.
Both awards go far toward affirming Andritz’ open and transparent information policy
vis-à-vis its shareholders and the financial community.
/ andritz 2002
71
Andritz Shares
Investor Relations
Andritz Investor Relations activities were further intensified in 2002. On the occasion of
the publication of the results for year 2001 and the quarterly reports for 2002, roadshows
were held in Austria and in other countries, and one-on-one meetings with large
institutional investors were organized. Analyst presentations were made in Helsinki,
Finland, and London, UK, to increase future research coverage, with many
representatives of renowned investment banks in attendance. These presentations met
with good response.
A public presentation was organized in Linz, Austria, together with a large Austrian bank,
which was attended by about 100 retail investors.
Shareholders’ For retail investors of Andritz and other interested shareholders, the Andritz
Club Shareholders’ Club was founded. Membership is free of charge and without any
obligation. Members are sent all new press releases and information on different events.
If you wish to join the Shareholders’ Club, please contact Andritz Investor Relations by
phone (+43 316 6902 2722), e-mail (welcome@andritz.com) or via our website
(www.andritz.com).
Key Figures for Security Identification Number AT 000 0730007

Andritz Shares ISIN-Code 073000
First Listing Day June 25, 2001
Types of Shares no-par value shares,
bearer shares
Number of Shares 13 million
Free Float approx. 16%
Stock Exchange Vienna (Prime Market)
Ticker-Symbols Reuters: ANDR.VI
Bloomberg: ANDR, AV
Stock Exchange Indices ATX; ATXPrime; WBI
ATX Weighting approx. 0.65%
Free Float Factor 0.25
Contact Andritz Investor Relations

Michael Buchbauer
Head of Investor Relations
Stattegger Strasse 18, A-8045 Graz
Phone: +43 316 6902 2979, Fax: +43 316 6902 465
Internet: www.andritz.com
E-Mail: michael.buchbauer@andritz.com
/ andritz 2002
72
Corporate Governance
Corporate Governance
The Austrian Working Group for Corporate Governance, which consists of
representatives of the Austrian Institute of Certified Public Accountants, of the Austrian
Association for Financial Analysis and Asset Management (ÖVFA – Österreichische
Vereinigung für Finanzanalyse und Anlageberatung), of listed companies and institutional
investors on the Vienna Stock Exchange, presented the Austrian Code of Corporate
Governance on 1st October 2002. This is a kind of code for corporations which covers
the standards of good corporate management common in international business
practice. It is not in the form of a statute law, but in the form of a set of rules to which
companies may submit at their own discretion. Beside important legal requirements, the
Code contains regulations that are commonly used on an international level; non-
compliance with these regulations must be explained and justified. The Code also
contains rules exceeding these requirements, and which should be used voluntarily.
The Austrian Code of Corporate Governance encompasses the following categories of

rules:
1. Legal Requirement (L): this rule refers to mandatory legal requirements.
2. Comply or Explain (C): this rule is to be followed; any deviation must be explained
and the reasons stated in order to be in compliance with the Code.
3. Recommendation (R): the nature of this rule is a recommendation; non-compliance

with this rule requires neither disclosure nor explanation.
This Code primarily applies to Austrian stock listed companies. It is based on the
provisions of Austrian corporation law, securities law and capital markets law as well as
on the principles set out in the OECD Principles of Corporate Governance.
Companies voluntarily undertake to adhere to the principles set out in the Austrian Code
of Corporate Governance.
Andritz AG cooperated in the drafting of the Corporate Governance Code by making

suggestions and remarks during the conception phase and it considers the finished
Code as an important contribution toward making the Vienna Stock Exchange even
more attractive for financial investors.
Andritz endorses compliance with the Austrian Corporate Governance Code. It regards
the Code as an essential means to implement responsible management and control of
Andritz AG which is directed toward creating added value. Implementation of and
compliance with the Code will promote and intensify the confidence of shareholders and
investors, customers, employees and suppliers, representatives of the media and other
stakeholders in the company. The Managing Board and the Supervisory Board as well
as the entire staff of Andritz are committed to meeting the Code.
The complete Corporate Governance Code can be accessed and downloaded from the
/ andritz 2002
Andritz website under www.andritz.com. The website also contains the statement on
the meeting of the Code with explanations to the deviations.
73
Corporate Risks
The Andritz Group acts globally and in different Business Areas and is therefore subject
to certain corporate and industry-specific risks. To determine these risks at an early
stage, Andritz has since long established a Group-wide control and steering
management committee whose main task is to identify nascent risks early on and to take
counter-measures. This system has proved very successful to date, and it will continue
to be an essential factor of pro-active company management within the Andritz Group.
The risks described in the following and the effects that these may have on the business
development of the Andritz Group have been taken into account in the Andritz Group’s
medium-to-long-term corporate planning, using various scenarios. At present, these do
not give rise to any concerns.
The risks that the Andritz Group incurs include but are not limited to the following:
- Risks related to the industry
Cyclicality
The Andritz Group has activities in industries whose nature is cyclical. This is especially
true of the Pulp and Paper and the Rolling Mills and Strip Processing Lines Business
Areas, and, to some extent also of the Feed Technology Business Area. This goes back
to the fact that these industries are directly dependent on the economic development
and the not infrequent fluctuations in demand for their products that come with it. The
price level for these products is in part directly dependent on the prevailing relationship
between supply and demand. Possible price fluctuations are therefore apt to have a
direct influence on capital investment decisions of Andritz Group customers, with
subsequent influences on Sales and then also on covering the Group’s fixed cost. With
the targeted expansion of the stable services business and the continued, pre-emptive
capacity management, the Andritz Group has been able to reduce the effects of
cyclicality on the business development, a strategy that it will maintain in the future. It
is still not impossible that one or several of these risks become imminent and that this
causes substantial and/or sustained impairment of the financial success of the company.
Customer concentration
There is a trend toward company mergers in the buyer industries of the Andritz Group,
especially in the pulp and paper and the steel industry. This might result in a reduction
of the number of customers in the future and in the Group having to face corporations
with greater purchasing power. Customer dependence might increase, which could
have direct consequences on the Group’s business activities.
/ andritz 2002
74
Corporate Risks
- Risks related to the Group´s business
Currencies
International Andritz Group has a number of affiliates outside the Euro region throughout
the world. The currencies in these countries may be subject to substantial fluctuations
in exchange rates. All appreciable exchange rate risks in connection with the orders
received from outside the Euro region are hedged by futures. Developments of
exchange rates may still have negative effects on the Sales, whose value is converted
into Euros and on the Earnings results of the Group. Also, the Shareholders’ Equity of
the Andritz Group is susceptible of being affected by changes in the exchange rate.
Competition
The Andritz Group works in a very competitive market for each of the Business Areas.
With persistent and intensive research and development work, the Group has succeeded
in updating the technologies offered to customers to the latest state-of-the -art. There is,
however, no way of guaranteeing that the Group can maintain and defend this current
leadership also in the future. The Andritz Group invests approx. 3% of its total Sales in
Research and Development and is confident that it will continue to seek to offer its
clients the latest in top technologies also in the future.
Integration of newly acquired companies

It is a strategic goal of the Andritz Group to become a comprehensive supplier of
equipment in all its Business Areas through organic growth and complementary
acquisitions. In the course of implementing this strategy, a number of companies with
world-wide operations were purchased since 1990, and successfully integrated in the
opinion of the company. Although Andritz can show a good track record in integrating
newly acquired companies, it cannot be excluded for future acquisitions that the planned
objectives and synergies cannot be reached wholly or partly and that this affects the
economic development of the Group. Similarly, recently acquired companies such as
Ahlstrom Machinery are still in the process of being integrated and may experience
unexpected delays or setbacks.
- Risks related to major orders
Payment risks
The Group´s business involves handling of projects with a large contract volume (major
projects) in each of the Business Areas. If customers fail to meet their payment
obligations for these major projects, it is not unlikely that this will have negative effects
on the net worth and liquidity situation of the Group. The Andritz Group has tried to limit
these risks by securing payment guarantees from banks for the majority of projects.
Even in the event of an export credit insurance being concluded, no more than 85% of
the purchase price can be recovered.
/ andritz 2002
75
Corporate Risks
Liabilities and performance of projects

In conjunction with the performance of plants supplied by Andritz, the Group is in many
cases under an obligation to grant performance warranties and to guarantee certain
deadlines. If the performances stated are not achieved or the deadlines are exceeded,
various gradations of liquidated damages or penalties are applied and/or modifications
have to be made on the deliveries at the Group’s expenses. If the warranted
performances are by far not reached, the customer has the right to rescind the contract
and return the contractual object to Andritz. Such a case is susceptible of adversely
affecting the Group’s financial development. As a basic principle, the Group declines to
accept liability for consequential damage, and insists on limitations of liability if
enforceable. Should it turn out to be impossible to agree on limitations of liability, such
a case of compensation payment might have negative effects on the company’s
business activity.
Cost overruns
Since certain parts of the manufacture of Group’s supplies are outsourced, the Group
may be compelled to quote to the customer without knowing exactly how much the
purchased parts will cost. Certainly there are empiric data and quotations from potential
suppliers, but variations of the exchange rate and other risks may adversely affect the
Group’s Earnings.
On EPC (engineered, procured and constructed) contracts, which might involve

buildings and project infrastrucure in some cases, there may also be cost overruns or
non-performance because typically, these contracts are handled with a consortium
partner or subcontractor. If such an EPC supplier fails to deliver, or if the contractually
agreed performances are not fulfilled by him, then this may impair Earnings of the Group
substantially.
Intellectual property infringement

In connection with the supply of production systems the Group typically has to indemnify
customers against patent infringements by installing and, in certain cases, using the
Group’s equipment for producing their products. Although the Group endeavours to
investigate thoroughly existing patents and other IP rights it may overlook some. This
could lead to negative effects on the Groups profitability and financial standing.
- Risks related to the capital markets
Development of international financial markets, recommendations by research

analysts, small free float
Possible price variations and high volatility on the major stock markets might adversely
affect the price of Andritz Shares. As a publicly listed company, Andritz is regularly
covered by financial analysts. Analysts’ selling or buying recommendations may lead to
considerable price fluctuations for Andritz Shares. In addition the relatively small free
float of the Andritz Shares and the resulting low liquidity on the Stock Exchange may
also lead to considerable price fluctuations.
/ andritz 2002
76
Andritz Automation
Andritz Automation
Automation equipment is an integral part of products in all Business Areas of the Andritz
Group. At 16 Andritz sites worldwide, over 200 engineers plan the automation
equipment for Andritz machines and plants. This decentralized structure guarantees the
necessary customer proximity.
Andritz Automation's core competences include start-up, plant optimization, and after-
sales service for plants planned and manufactured by Andritz. Cooperation between all
business units within Andritz Automation ensures that the process know-how available
throughout the Group can be applied to obtain customer-oriented solutions.
Innovations are implemented in a joint, coordinated research and development program

for automation in order to keep up with the ever shorter intervals between introducing
new products. Here, Andritz makes use of the knowledge in a range of different special
disciplines. In 2002, automation solutions were developed in all Business Areas in order
to improve the processes and plants both technically and economically.
Activities in Research and Development
PrimeControl™
A modular automation concept for services specific to Andritz and dealing with control,
adjustment, and visual display systems for tissue machines has made it possible to use
tested software modules in well-established plant sub-assemblies. The customer benefits
from a much shorter commissioning period and the resulting lower costs.
Dynamic Process Simulation

Over the past few years, Andritz Automation has expanded its activities considerably in
the dynamic process simulation sector.
Acquisition of IDEAS Simulation Inc., previously AMEC Technologies Inc., in January

2003 has substantially strengthened know-how in the dynamic process simulation
sector for the pulp and paper industry. IDEAS Simulation Inc. is one of the market
leaders world-wide in this sector and has successfully established the IDEAS software
as the leading platform for dynamic process simulation in the pulp and paper industry.
Dynamic process simulation is mainly used for simulating production processes before Aquisition of
production systems actually go online. The goal is to minimize the time required for IDEAS Simulation
start-up by identifying and containing risks and possible bottlenecks that may occur in Inc. strengthens
the actual production process. The software tool, in collaboration with the customer and know-how in
during the planning and design phases, allows simulation of production phases and dynamic process
variations of the plant to be supplied. Based on the results, both the production process simulation
and the plant can be optimized before it is actually built. In addition, it is an ideal tool
for hands-on training of future operating personnel as well as for the Andritz personnel
who will implement the plant.
/ andritz 2002
77
Andritz Automation
Service, OPETM Online (Overall Production Efficiency)

Over the past 15 years, remote diagnosis and teleservice have allowed technologists
and software specialists in the Andritz Group to provide assistance to customers'
maintenance teams.
The latest information technologies provide the means to assist plant operators with
operations, service, and maintenance matters, with complete service concepts. With
vibration analyses preventive maintenance becomes reality. By applying well-directed
data acquisition and analysis, weak points can be detected at an early stage and
optimization potential identified. If problems arise, it is possible to consult the
competent specialists at any time, regardless of where they may be.
Advanced Control
Many Andritz Group technologies are controlled very efficiently by means of so-called
"Advanced Control Strategies". These proprietary processes are used to optimize pass
schedules for cold-rolling mills, or to increase the efficiency of pickling lines. Model-
assisted, advanced control algorithms are also applied in digester control and in
debarking processes.
In 2002, close cooperation with renowned specialists in advanced control strategies

created a basis for the use of generic processes in process optimization.
Andritz Automation in 2002

In 2002, Andritz Automation again was able to bring a number of projects to a successful
conclusion. The automation solutions and products developed make a substantial
contribution to increased customer benefit.
In constructing and commissioning the Aracruz Pulp Mill in Brazil, the modular plant
software and the consistent, comprehensive "soft" commissioning of the plant allowed
completion of actual commissioning in just 42 hours – from chip production to packing
of the pulp bales. The cross-cutter and bale packing lines were simulated in a plant and
process simulation unit, then optimized and the operating personnel trained on the
dynamic simulation model.
The well-established automation products LogScanTM and WoodScanTM were installed at

complete woodyard systems in Austria, Brazil, Finland, Canada, and Germany.
For the stainless steel annealing and pickling line supplied to ThyssenKrupp Nirosta of
Krefeld, Germany, an integrated mathematical model was installed for the annealing
furnace and pickling line in order to boost plant efficiency and product quality.
Andritz’ competence in automation systems for environmental engineering plants was

proven in the UK. A plant treating municipal sludge was equipped with 7 PLC systems
for 3000 I/O. This plant is operated with a graphic visual display system and runs in (hot)
standby mode.
/ andritz 2002
78
Employees
Employees
As of December 31, 2002, the Andritz Group had 4,601 employees, a slight increase of
1.2% over the same date in 2001 (December 31, 2001: 4,545). This is essentially due to
the acquisitions of ABB Drying and SELAS SAS. Excluding the acquisitions the number
of Andritz Group employees amounts to 4,403 people.
The global presence of the Andritz Group is also reflected in the distribution of its
personnel, of which approximately one quarter each work in Austria, Northern Europe,
and North America, the remainder is split over the countries in continental Europe
(Germany and France) and Asia.
Major goals in 2002

Implementation of the new organizational structure for the Pulp and Paper Business Area
had its counterpart in Human Resources. Newly appointed managers were carefully
introduced to their new management assignments by experienced management staff
and have been able to assume complete responsibility for the various business units.
Additional manpower requirements for management positions, for instance in newly
acquired companies, were filled with highly qualified recruits in due time.
In the course of the continuous personnel management activities, the Andritz Group took
part in a number of career information fairs and has strengthened cooperation with
universities and colleges. This is to ensure that the requirement for qualified young
personnel can be met quickly in the future.
Many employees have taken part in training modules offered internally. Future additional
training modules will be planned after making an intensive analysis on the job
requirements of Andritz Group employees. Courses and programs offered by external
institutes were also attended by many colleagues.
Germany 8% France 5% Regional distribution

of Andritz Group
Netherlands 4%
Austria 25% employees
United Kingdom 2%
Others 8%
North America 23% Northern Europe 25%

/ andritz 2002
79
Employees
Other elements of Human Resources work were also further deepened. For instance,
salary models, based on success-related criteria, were introduced on a major scale.
Activities begun in the past for employee coaching by experienced managers inside the
company were continued. External specialists were also hired in order to coach our
employees singly or in groups.
The Andritz Group appears as an attractive employer, which is expressed by the

application of a sufficient number of qualified candidates for vacancies and the low labor
turnover.
Global Human Resources Management

Efforts to "globalize" the Group’s Human Resources management were clearly pushed
during the year under review. In the light of global coordination of central functions,
harmonization of systems and processes applied in Human Resources work in the
various Andritz Group affiliates has been an objective.
Central goals of global personnel management are to standardize guidelines and

procedures in the areas of recruiting, training, personnel development, and performance
assessment. In this manner, Andritz employees around the globe will receive similar and
comparable training. This will assist in filling position vacancies with internal candidates.
With the greatest possible continuity, committed and highly qualified employees will be
offered attractive career opportunities throughout the Group.
/ andritz 2002
80
eBusiness
eBusiness
In November 2000, Andritz launched its Group-wide Andritz eBusiness Connectivity

Model. This project is designed to make use of the possibilities and opportunities
available from Internet technologies in a profitable way for all those concerned. It is one
of the Andritz Group's foremost strategic goals to intensify its use of the new media by
applying Internet-based customer and system solutions more extensively.
The primary approach of Andritz eBusiness initiatives is to offer customers, suppliers,

and partners new and more comprehensive services. At the same time, the Andritz
business processes along the value-added chain will become more efficient and
effective with Internet-based solutions. This allows a prompt and personalized reaction
to individual needs, as well as generating benefits for all stakeholders of the Andritz
Group.
In 2002, the activities launched under the Andritz eBusiness project were continued.
Here, the emphasis lay on implementing customer-oriented web applications, as well as
on boosting the efficiency of internal business processes.
A total of eight new eBusiness solutions were completed in the year under review,
focusing largely on eService, eProcurement, and on Intranet-based applications to
provide better interaction between company sites.
The Pulp and Paper Service Club - the Internet portal for Andritz' customers in the Pulp
and Paper Business Area – was further extended in 2002. There are now some 800
users registered from over 240 customers. As from the start of 2003, Andritz also has
an online ordering service for spare parts.
Andritz has generated further cost-saving potentials in the eProcurement sector by

automating purchase order transactions and utilizing online auction tools. The
eProcurement activities planned for 2003 will focus particularly on strategic
procurement.
/ andritz 2002
81
Business Process Management
Through internal growth, but also by acquiring companies with complementary

products, the Andritz Group has seen major growth over the past years. The newly
added companies have in some cases implemented different organizational process
systems and IT solutions which make the targeted Group-wide integration of Andritz´
Business Areas and the utilization of synergies rather difficult.
New ways of thinking and approaches call for a critical review of the processes used
today. Development of adequate structures to implement these new approaches
requires professional business process management. New definition of responsibilities
is an objective, as is adaptation of processes to the new technologies used and to the
new entrepreneurial framework. Finally, the interfaces between the different companies
in the Group must be checked.
Business Process Management will, therefore, be one of the major focuses for the
Andritz Group in 2003. During the Fourth Quarter of the reporting year a new central
function was established which will follow up on the integration of the Group in terms of
Business Process organization. The goal is to standardize important processes
throughout the entire Group and inside the Business Areas as far as useful.
Andritz Business Process Management has the following focuses:
Collaboration
Andritz defines Collaboration as a concerted action to create benefit (both within the
Group and also with external partners). The essence of collaboration is coordinated
cooperation between business units to perform a defined service by sharing knowledge
and dividing tasks. The aim is to achieve a higher benefit overall than would be possible
with separate individual activities. Andritz has placed considerable emphasis on the
process of order handling to create inter-Group collaboration and synergies.
Customer Relationship Management (CRM)

It is a defined goal of the Andritz Group to be a preferred technical supplier with regard
to all its Business Areas, and to build a lasting relationship of trust and satisfaction with
each customer over time. Efficient processes which are tuned both to the company
strategy, to the Andritz Group staff, and to customer requirements are needed for this.
Andritz has implemented a Customer Relationship Management (CRM) System. The
first step was for all the Divisions of the Pulp and Paper Business Area, working with the
motto, "Speaking with one voice to the customer." The CRM System enables improved
internal exchange of information about a customer's specific needs and requirements.
The target is to be a competent partner of our customers through joint and concerted
actions. This will strengthen Andritz' position as a supplier of complete systems and
services for the pulp and paper industry.
/ andritz 2002
82
Quality
Quality
Apart from well-trained employees who are prepared to take responsibility, the
complexity of Andritz’ systems requires manufacturing standards of the highest level
and systematic organization of the sequences that are necessary for planning,
manufacture, and installation. Thorough knowledge of the technologies that are
essential for customers is a prerequisite for developing machines, plants, and processes
with which warranty values can be met and surpassed.
Key components and equipment whose design and manufacture needs special
knowledge are produced at one of the production sites run by the Andritz Group. Other
components are made by sub-suppliers that Andritz selects and whose quality it
monitors. These suppliers have long-term experience in cooperating with Andritz and
are a key factor in the cost leadership of the Andritz Group.
Focus 2002
During the year under review, aspects of integration in the Andritz Group played a major
role in Quality Management. Process analysis that covered several sites permitted the
identification and utlization of "Best Practices" in all sections.
Successful implementation of the new European standards for pressurized vessels has
led to a further increase in the quality and operating reliability of major plant
components. Greater emphasis on endangerment analyses has made it possible to
reduce risks to a minimum.
In procurement / outsourcing, higher qualification of suppliers was targeted and realized

in the aim to streamline process sequences and to cut lead times. With suitable quality
assurance contracts, supplier/buyer relationship was improved with mutual benefits.
Consistent orientation to process approaches and utilization of experience feedback by

systematic cause analysis and consequent improvements are given top priority in the
work on management systems in the meaning of the new ISO 9001: 2000 standard, which
will be implemented in 2003.
/ andritz 2002
83
Environmental Protection
Protecting the environment and conservation of natural resources have had a prominent
place in the Andritz Group’s corporate philosophy for many years now. As a global
company, the Andritz Group is committed to the concept of global environmental
protection. Therefore, uniform environmental protection guidelines have been
implemented at the different sites. Compliance with these guidelines is observed by
Environmental Protection Assignees. Stringent environmental protection standards have
been implemented especially at the production level, with the added result of optimized
utilization of the materials and resources used in manufacture.
During the year 2002, the main focus of the environmental protection program was
placed on optimization of the existing waste management system and measures to save
materials and resources, especially in water supply and disposal of waste water. The
residual waste quantity from our production processes was again reduced during the
year under review and far better utilization of the materials and resources employed was
achieved.
These measures and the results attained at the site in Graz have been confirmed by the
receipt of the Graz Ökoprofit award.
Environmental protection is an important subject not only within our operations but also
with the products that Andritz develops. Optimum utilization and recycling of the
materials used in production processes are capable of reducing environmental pollution
to a minimum and of curtailing operating costs for our customers at the same time.
The Pulp and Paper Business Area offers its customers comprehensive solutions
especially in recovery of the chemicals and liquids used in kraft pulp production. The
product range encompasses evaporation plants, recovery boilers, and recausticizing
systems, as well as lime kilns and waste water evaporators, and ensures near-complete
recycling of the materials used in kraft production. The products contribute both to the
economy and to the optimization of the production processes. Here, Andritz has very
long experience, with an installed base of over 800 reference plants.
Up-to-date technologies have also been developed for generating energy from biomass
to increase electric power production. Andritz offers these technologies with great
success on the market. The biomass-derived energy in a pulp mill is sufficient to supply
electricity to the entire mill complex and also to transfer a certain amount of excess
energy to the public power network. Such a biomass project will be realized in
conjunction with the construction of the world’s largest recovery plant at UPM-
Kymmene’s Wisaforest mill in Pietarsaari, Finland. After its start-up, this plant will be
able to generate up to 600 megawatts of steam and up to 140 megawatts of electricity
from renewable energy forms.
/ andritz 2002
84
Andritz drying plants turn sewage

sludge to dry granulate that can be
re-used in agriculture and industry.
/ andritz 2002
This helps to save raw materials.

Photo: Drying plant in Cardiff, GB.
85
The RT Pretreatment process for chips and the RTS process for improving fiber qualities
were patented by Andritz to reduce both energy and chemical consumption. They also
optimize yield from the raw material employed. Andritz refiner plates give a reduction of
the energy consumption of up to 450 kWh/t in many applications, but at the same time
the quality of the end products is also improved.
In Fiberboard applications, Andritz refiner plates allow energy savings of up to 30 to 50%

depending on the characteristics of the raw materials and on the final product quality. In
many applications, these savings may be as high as 200 kWh/t.
Our EquiDry S high-temperature hood utilizes exhaust heat from the dryer to produce
steam for heating the Yankee cylinder. Distinct energy savings are achieved.
The regeneration systems for pickling acid that were developed for application in the
Rolling Mills and Strip Processing Lines Business Area are designed for almost complete
recovery of the acids used. This not only gives largely wastewater-free operations but
also reduces plant operating cost.
The Chemcoater is used in strip coating systems for applying the chromate solution in
the so-called no-rinse process. This is a closed system, hence no chromate goes into
the waste water.
The drying systems for sewage sludge developed and constructed by Environment and
Process Technologies also help to save raw materials and to reuse waste. With these
plants, the sewage sludge that is a by-product of cleaning municipal and industrial
effluents is dried and converted into granulate which can be reused as fuel, fertilizer or
soil improver, or as aggregate material in the brick and cement industry.
/ andritz 2002
86
Consolidated Financial Statements 2002
of the Andritz Group according to IFRS
Independent Auditors’ Report 88
Consolidated Balance Sheet 89
Consolidated Income Statement 90
Consolidated Cash Flow Statement 91
Consolidated Statement of Shareholders’ Equity 92
Notes to the Consolidated Financial Statements 93
/ andritz 2002
87
Independent Auditors’ Report
We have audited the accompanying consolidated group balance sheet of Andritz AG ("Andritz Group”) as at 31
December 2002, and the related consolidated statement of income, consolidated cash flow statement and
consolidated statement of shareholders’ equity for the year then ended. These group financial statements are the
responsibility of the Company’s management. Our responsibility is to express an opinion on these group financial
statements based on our audit.
We conducted our audit in accordance with International Standards on Auditing ("ISA”) as published by the Inter-
national Federation of Accountants ("IFAC”). Those Standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material misstatements. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our
opinion.
In our opinion, the group financial statements give a true and fair view of the consolidated financial position of the
Andritz Group as at 31 December 2002 and of the consolidated results of its operations and its consolidated cash
flows for the year then ended in accordance with International Accounting Standards ("IFRS”).
We confirm, that the accompanying status report is in compliance with the group financial statements and that the
legal requirements are met for the exemption of the obligation of preparing group financial statements and a status
report according with Austrian law.
Vienna, 18 February 2003
AUDITOR TREUHAND GMBH

Wirtschaftsprüfungs- und Steuerberatungsgesellschaft
Auditor Treuhand GmbH is a member of
Deloitte
& Touche
/ andritz 2002
88
Consolidated Balance Sheet
as of December 31, 2002 and 2001
2002 2001
Notes (in TEUR) (in TEUR)
Assets
Intangible assets 5,651 5,908
Goodwill 133,687 147,982
Property, plant and equipment 120,679 126,775
Shares in associated companies 3,384 3,276
Investments 11,748 11,572
Fixed and financial assets 1. 275,149 295,513
Deferred tax assets 18. 17,696 21,114
Inventories 2. 113,206 118,134

Advance payments made 3. 3,225 25,287
Trade accounts receivable 4. 188,244 212,945
Cost and earnings of projects under
construction in excess of billings 5. 61,411 99,392
Other receivables 6. 39,993 34,204
Prepayments and deferred charges 3,411 9,393
Marketable securities 19,401 7,908
Cash and cash equivalents 188,129 117,835
Current Assets 617,020 625,098
Total Assets 909,865 941,725
Shareholders' Equity and Liabilities

Share capital 94,510 94,510
Capital reserves 45,966 45,966
Retained earnings 82,461 89,854
Shareholders' equity 222,937 230,330
Minority interests 6,238 9,345
Provisions for severance payments 10. 26,845 23,468

Provisions for pensions 10. 18,621 14,424
Other provisions 121,968 140,552
Provisions 9. 167,434 178,444
Liabilities for deferred taxes 18. 45,803 39,605
Non-current interest bearing borrowings 610 976

Bonds 100,000 0
Interest bearing borrowings 4,292 47,494
Trade accounts payable 84,129 142,379
Billings in excess of cost and earnings
of projects under construction 5. 113,493 94,823
Advance payments received 30,931 73,618
Liabilities for current taxes 8,298 3,540
Other liabilities 12. 125,700 121,171
Liabilities 11. 467,453 484,001
Total Shareholders’ Equity and Liabilities 909,865 941,725

/ andritz 2002
The following notes to the consolidated financial statements form an integral part of this consolidated balance sheet.
89
Consolidated Income Statement
for the years ended December 31, 2002 and 2001
2002 2001
Notes (in TEUR) (in TEUR)
Sales 13. 1,110,110 1,318,701

Changes in inventories of finished goods
and work in progress 1,011 8,669
Capitalized cost of self-constructed assets 244 1,225
1,111,365 1,328,595
Other operating income 14. 16,173 19,018

Cost of materials (618,703) (802,435)
Personnel expenses 15. (287,316) (289,932)
Other operating expenses 16. (140,645) (160,715)
Earnings before interest, taxes,
depreciation and amortization (EBITDA) 80,874 94,531
Depreciation and amortization (without amortization of goodwill) (22,141) (26,539)

Earnings before interest, taxes and
amortization of goodwill (EBITA) 58,733 67,992
Amortization of goodwill (13,467) (13,404)

Earnings before interest and taxes (EBIT) 45,266 54,588
Income/expense from associated companies (46) 325

Interest results 321 3,093
Other income from financing activities 194 2,105
Financial results 17. 469 5,523
Earnings before taxes (EBT) 45,735 60,111
Income taxes 18. (18,088) (22,635)

Net Income 27,647 37,476
Share of profit due to minority interests (1,189) (3,882)

Net Income excluding minority interests 26,458 33,594
Earnings per non par value share (in EUR) 19. 2.04 2.82
Proposed or paid dividend per non par value share (in EUR) 0.90 0.90
Weighted average number of non par value shares 12,976,624 11,916,667
The following notes to the consolidated financial statements form an integral part of this consolidated income statement.
/ andritz 2002
90
Consolidated Cash Flow Statement
for the years ended December 31, 2002 and 2001
2002 2001
(in TEUR) (in TEUR)

Interest result (321) (3,093)
Depreciation and amortisation of fixed assets 35,723 39,811
Income/Expenses from investments in associated companies 46 (393)
Changes in accrued expenses 7,846 (420)
Results from the sale of fixed and financial assets (323) (1,482)
Taxes paid (10,017) (19,244)
Interest received 6,647 12,670
Interest paid (6,495) (10,941)
Gross cash flow 78,841 77,019
Changes in inventories 2,287 (10,962)

Changes in advance payments made 19,362 (1,912)
Changes in receivables, prepayments and
deferred charges 63,517 (21,264)
Changes in short-term provisions and accruals (21,476) 19,104
Changes in advance payments received (36,874) 41,618
Changes in liabilities and deferred income (29,821) (31,713)
Cash flow from operating activities 75,836 71,890
Payments received for asset disposals 2,440 9,197

Payments made for investments in fixed tangible and intangible assets (21,657) (24,058)
Payments made for investments in financial assets (1,338) (1,778)
Cash flow due to purchase of minority interests
and business acquisitions (7,029) (58,449)
Cash flow from investing activities (27,584) (75,088)
Changes in interest bearing borrowings (56,482) (41,877)

Dividends paid by Andritz AG (11,700) (3,000)
Dividends paid to minority shareholders (321) (962)
Acquisition of own shares (1,663) 0
Amounts due to capital increase 0 39,745
Payments made by associated companies 409 184
Cash flow from financing activities 43,207 (5,910)
Change in cash and cash equivalents 91,459 (9,108)
Changes in cash and cash equivalents resulting from

exchange rate fluctuations (9,672) (457)
Cash and cash equivalents at the beginning of the period 125,743 135,308
Cash and cash equivalents at the end of the period 207,530 125,743
thereof marketable securities 19,401 7,908
thereof cash-in-hand, cheques, bank deposits and cash equivalents 188,129 117,835
The following notes to the consolidated financial statements form an integral part of this consolidated cash flow statement.
/ andritz 2002
91
Consolidated Statement of Shareholders’ Equity
Amounts due
to agreed Currency
Share Capital capital Retained IAS 39 translation
(in TEUR) Notes capital reserves increase earnings reserve adjustments Total
Status as at 1 January 2001 72,700 1,931 27,000 40,259 0 18,768 160,658
Adjustment 1.1.2001 due to IAS 39 (372) (372)

Net income excluding
minority interests 33,594 33,594
Dividend payments (3,000) (3,000)
Currency translation adjustments 1,910 1,910
Capital increase 7,270 19,730 (27,000) 0
Initial public offering 14,540 27,460 42,000
Costs of initial public offering (3,155) (3,155)
Changes to IAS 39 reserve (1,498) (1,498)
Other changes 193 193
Status as at 31 December 2001 94,510 45,966 0 71,046 (1,870) 20,678 230,330
Status as at 1 January 2002 94,510 45,966 0 71,046 (1,870) 20,678 230,330
Net income excluding

minority interests 26,458 26,458
Dividend payments 8. (11,700) (11,700)
Currency translation adjustments 8. (30,735) (30,735)
Acquisition of own shares (1,663) (1,663)
Changes to IAS 39 reserve 10,471 10,471
Other changes (224) (224)
Status as at 31 December 2002 94,510 45,966 0 83,917 8,601 (10,057) 222,937
The following notes to the consolidated financial statements form an integral part of this consolidated statement of shareholders’
equity.
/ andritz 2002
92
Notes to the Consolidated Financial Statements
Notes to the Consolidated
Financial Statements as at December 31, 2002 and 2001
A. General
Andritz AG ("Andritz”) is incorporated under the laws of the Republic of Austria and is listed on the Vienna Stock Exchange
since June 2001. The Andritz Group (the "Group”) is a leading producer of high technology industrial machinery and
operates in four main strategic business areas: Pulp and Paper, Rolling Mills and Strip Processing Lines, Environment and
Process Technologies and Feed Technology.
The average number of employees in the Group was 4,497 in 2002 and 4,498 in 2001. The registered office address of the
Group is located at Stattegger Strasse 18, 8045 Graz, Austria.
The consolidated financial statements are the responsibility of the management and will be acknowledged by the
Supervisory Board.
Various amounts and percentages set out in these consolidated financial statements have been rounded and accordingly
may not total.
B. Summary of significant Accounting Policies
The principal accounting policies adopted in preparing the financial statements of Andritz are as follows:
a. General
The accompanying financial statements are prepared in accordance with the standards formulated by the International
Accounting Standards Board (IASB). The accompanying financial statements have been prepared under the historical cost
convention, except for marketable securities which are stated at their fair values. For these financial statements prepared
in accordance with IFRS based on §245a of Austrian Commercial Code the legal requirements are met for the exemption
of the obligation of preparing group financial statements.
b. Reporting Currency
The Group financial statements are prepared in EURO.
c. Principles of Consolidation
The consolidated financial statements of the Group include Andritz and the companies that it controls. This control is
normally evidenced when Andritz owns, either directly or indirectly, more than 50% of the voting rights of a company’s share
capital and is able to govern the financial and operating policies of an enterprise so as to benefit from its activities. The
equity and net income attributable to minority shareholders’ interests are shown separately in the balance sheets and
income statements, respectively.
The purchase method of accounting is used for acquired businesses. Companies acquired or disposed of during the year
are included or excluded, accordingly, in the consolidated financial statements from the date of acquisition or from the date
/ andritz 2002
of disposal. Joint Ventures with equal voting rights are consolidated on a proportionate basis.
93
d. Major Differences between Austrian and IFRS Accounting Principles
Goodwill: In accordance with IAS 22, goodwill from capital consolidation is capitalised and amortised over the useful life. The
Austrian Commercial Code allows a credit to reserves, with no effect on the income statement.
Construction contracts: According to Austrian accounting regulations, sales and profits are first realised upon takeover by
the customer (completed contract method). Under IAS 11, order completion is accounted using the percentage of completion
method in accordance with progress and pro rata profit realisation. The extent of completion is established by considering
the ratio of accumulated costs to estimated total costs to complete each contract (cost-to-cost method).
Deferred taxes: The Austrian Commercial Code requires the creation of deferred tax provisions for temporary differences if
a tax liability is expected to arise when these differences are reversed. IFRS require the creation of deferred taxes for all
temporary differences which arise between financial statements prepared for tax purposes and IFRS financial statements,
measured at actual or enacted tax rates. Deferred tax assets must also be recorded for unused loss carry forwards and
unused tax credits which are expected to be offset against taxable profits in the future.
Other provisions: In contrast to the Austrian Commercial Code, IFRS interprets the principle of prudence differently with
respect to provisions. IFRS tends to place stricter requirements on the probability of an event occurring and on estimating
the amount of the provisions. According to Austrian Commercial Code certain amounts reported as liabilities under IFRS
would be normally shown as provisions.
Provisions for pensions: In keeping with the Austrian Commercial Code, provisions for pensions are calculated by an
actuary. Under IFRS, provisions for pensions are calculated using the projected unit credit method, based on a discount rate
determined by reference to market yields on high quality corporate bonds and an expected compensation increase.
Marketable securities: Austrian accounting principles require securities to be recorded at the lower of acquisition costs or
market value. Under IFRS marketable securities available for sale are to be valued at fair values, and there is a choice for the
treatment of changes in the fair value.
Foreign currency transactions: These two accounting systems require different treatments for unrealized profits arising from
the valuation of foreign exchange items as of the balance sheet date. According to Austrian law, only unrealized losses are
recorded, whereas IFRS also requires the recognition of unrealized profits of monetary items.
Non-current securities: In accordance with IFRS non-current securities of the Group are classified as "available for sale"
and are valued at their quoted market price at the balance sheet date. The Austrian Commercial Code requires a valuation at
acquisition costs or a lower market value if there is a sustainable decrease of monetary items.
Hedging: With the adoption of IAS 39, the Group has designated its forward exchange contracts as cash flow hedges and
carries them at fair value. Changes in the fair value of a hedging instrument that qualifies as a highly effective cash-flow hedge
are recognised directly in the hedging reserve in shareholders' equity. The Austrian Commercial Code does not require a
valuation of hedging contracts at fair value as of the balance sheet date.
/ andritz 2002
94
C. Acquisitions and Other Changes in Scope of Consolidation
The remaining 50% of shares of Guinard Centrifugation SA, France were acquired in June 2002 for a purchase price of EUR
5,175 thousand. Guinard has already been fully consolidated in the last years. Therefore the minority interests have been
reduced by EUR 4,546 thousand and the difference to the purchase price of EUR 628 thousand has been shown as
goodwill.
In December 2002 the Andritz Group acquired the pulp and paper drying business from ABB as well as the technology for
hot-dip galvanizing from the French company Selas SAS. Certain assets and liabilities related to the described business
have been acquired and are included in the consolidated financial statements of the Andritz Group for 2002. For both
acquisitions a purchase price of EUR 1,602 thousand has been paid. Mainly as a result of reserves for restructuring the
goodwill of these transactions amounted to EUR 6,300 thousand of which EUR 1,600 thousand are related to the hot dip
galvanizing and EUR 4,700 thousand are related to the pulp and paper drying. There is no material impact on other balance
sheet items arising from these transactions and the effects on the income statement are also negligible.
In addition, other minor business acquisitions and changes in scope of consolidation took place, which did not lead to
material changes in the business position of the Group.
Inter-company balances and transactions, including inter-company profits and unrealized profits and losses have been
eliminated. The consolidated financial statements have been prepared using uniform accounting policies for like
transactions and other events in similar circumstances. These uniform accounting policies are not used for the financial
statements of associated companies.
D. Accounting and Valuation Principles
a. Intangible Assets
Intangible assets are accounted for at acquisition cost. After initial recognition, intangible assets are accounted for at cost
less accumulated amortization and any accumulated impairment losses. Intangible assets are amortised on a straight-line
basis over the best estimate of their useful lives. The amortisation period and the amortisation method are reviewed annually
at each financial year-end.
Concessions, industrial rights and similar rights and values

Amounts paid for concessions, industrial rights and similar rights and values are capitalised and then amortised on a
straight-line basis over the expected periods of benefit. The expected useful lives vary from 3 to 15 years.
Goodwill
The excess of the cost of an acquisition over the Company’s interest in the fair value of the net identifiable assets and
liabilities acquired as at the date of the exchange transaction is recorded as goodwill and recognised as an asset in the
balance sheet. Goodwill is carried at cost less accumulated amortisation and accumulated impairment losses. Goodwill is
amortised on a straight-line basis over its useful life.
The amortisation period is determined at the time of the acquisition based upon the particular circumstances and ranges
from 7 to 15 years. The unamortised balances are reviewed at each balance sheet date by assessing the probability of
continuing future benefits. If there is an indication that goodwill may be impaired, the recoverable amount is determined for
the cash-generating unit to which the goodwill belongs. If the carrying amount is higher than the recoverable amount, an
/ andritz 2002
impairment loss is recognised. Goodwill and negative goodwill arising from business combinations before 1 January 1995
were written off against reserves.
95
b. Property, Plant and Equipment
Property, plant and equipment are stated at cost less accumulated depreciation and accumulated impairment losses. When
assets are sold or retired, their cost and accumulated depreciation are eliminated from the accounts and any gain or loss
resulting from their disposal is included in the income statement.
The initial cost of property, plant and equipment comprises its purchase price, including import duties and non-refundable
purchase taxes and any directly attributable costs of bringing the asset to its working condition and location for its intended
use. Expenditures incurred after the fixed assets have been put into operation, such as repairs and maintenance and
overhaul costs, are normally charged to income in the period in which the costs are incurred. Depreciation is calculated on
a straight-line basis over the following estimated useful lives:
Buildings 20 – 50 years
Machinery and technical equipment 4 – 10 years
Tools, office equipment and vehicles 3 – 10 years
The useful life and depreciation methods are reviewed periodically to ensure that the method and period of depreciation are
consistent with the expected pattern of economic benefits from items of property, plant and equipment. Assets in the course
of construction represent plant and properties under construction and are stated at cost. These include costs of
construction, plant and equipment and other direct costs. They are not depreciated until such time as the relevant assets
are completed and put into operational use.
c. Financial assets and investments in associated companies
These long-term investments consist primarily of shares in associated companies and non-current securities. Investments
in associated companies (generally investments of between 20% to 50% in a company’s equity) where a significant
influence is exercised by the Group are accounted for by using the equity method. An assessment of investments in
associates is performed when there is an indication that the asset has been impaired or the impairment losses recognised
in prior years no longer exist.
Other non-current securities held on a long-term basis are classified as available-for-sale investments and valued at fair
value. Changes of these fair values are recognised as gains or losses in the income statement.
d. Finished Goods, Work in Progress, Raw Materials
Inventories, including work in progress, are valued at the lower of cost and net realisable value, after provision for obsolete
and slow moving items. Net realisable value is the selling price in the ordinary course of business, less the costs of
completion, marketing and distribution. Cost is determined primarily on the basis of the FIFO method. For processed
inventories, cost includes the applicable allocation of fixed and variable overhead costs. Unrealisable inventory has been
fully written off. Contracts other than construction contracts are valued at production costs. For these contracts the revenue
is recognised when the ownership of the goods is transferred ("completed contract method”).
/ andritz 2002
96
e. Construction Contracts
Receivables from construction contracts and the related sales are accounted for using the percentage of completion
method. The construction contracts are determined by the terms of the individual contract, which are agreed at fixed prices.
The extent of completion ("stage of completion”) is established by the cost-to-cost method. Reliable estimates of the total
costs and sales prices and the actual figures of the accumulated costs are available on a monthly basis. Estimated contract
profits are recorded in earnings in proportion of recorded sales. In cost-to-cost method sales and profits are recorded after
considering the ratio of accumulated costs to estimated total costs to complete each contract. Changes to total estimated
contract costs and losses, if any, are recognised in the income statement of the period in which they are determined. For
remaining technological and financial risks which might occur during the remaining construction period, an individually
assessed amount is included in the estimated contract costs. Impending losses out of the valuation of construction
contracts are recognised at the time of occurrence. Impending losses are recognised when it is probable that the total
contract costs will exceed the contract revenues. For possible customer warranty claims provisions are accounted for
according to the profit realisation. At the completion of a contract the remaining warranty risk is reassessed.
f. Trade Accounts Receivable
Receivables are stated at face value, after allowances for doubtful accounts.
g. Marketable Securities
Marketable securities consist of governmental bonds and bonds of first-class banks that are traded in liquid markets. They
are held for the purpose of investing in liquid funds and are not generally intended to be retained on a long-term basis.
Marketable securities are stated at the market value. Adjustments in valuation are included in the income statement. Interest
received on trading securities is reported as interest income. On a disposal of an investment, the difference between the
net disposal proceeds and the carrying amount is included in the income statement.
h. Cash and Cash Equivalents
Cash includes cash in hand and cash with banks. Cash equivalents might include short-term deposits with non-banks with
original maturities of three months or less and that are not subject to any risk of change in value.
i. Share Capital
Only ordinary shares exist and all shares are issued and have the same rights.
At the extraordinary shareholders’ meeting of the Company held on 6 September 2000 the shareholders resolved to
authorize the Managing Board to increase the nominal value of the Company’s share capital with prior approval of the
Supervisory Board by an amount of up to EUR 36,350,000 through the issue of up to 5,000,000 shares in bearer or
registered form and for a contribution in cash or in kind. This increase has been authorized for a maximum of five years from
the registration of the amendment to the Articles of Association in the commercial register which took place on
19 September 2000. Out of this authorization Andritz issued 1,000,000 shares at the end of 2000. For these shares an
amount of EUR 27.0 million was paid by the shareholders (thereof EUR 24.8 million before 31 December 2000). This increase
was registered in the commercial register on 26 January 2001.
At the 94th ordinary shareholders’ meeting held on 19 March 2001 the shareholders resolved to authorize the Managing
Board to increase the nominal value of the Company’s share capital with prior approval of the Supervisory Board by a further
amount of up to EUR 10,905,000 through the issue of up to 1,500,000 shares in bearer form and for contribution in cash or
/ andritz 2002
kind, so that authorized capital was increased to EUR 39,985,000 or 5,500,000 shares respectively.
97
In the course of the Company’s IPO out of this authorization Andritz issued 2,000,000 shares in June 2001, the issue price
was fixed at EUR 21 per share. This increase was registered in the commercial register on 23 June 2001.
Consequently the share capital amounts to EUR 94,510,000 divided into 13,000,000 shares of non par value.
Based on the authorization of the shareholders’ meeting and with approval from the Supervisory Board the Managing Board
has decided a program for acquisition of own shares up to 650,000 shares between 16 May 2002 and 27 June 2003 within
a price range of 10 to 35 Euro per share. Until 31 December 2002 76,897 own shares have been acquired in several steps
at an average price of 21.62 per share. It is planned to use these shares for delivery of shares within the framework of the
Management Share Option Plan. The bookvalue of the own shares equals approximately the fair value.
j. Capital Reserves
Capital Reserves are created in accordance with Austrian requirements and include share premium amounts.
k. Provisions
A provision is recognised when, and only when, an enterprise has a present obligation (legal or constructive) as a result of
a past event and it is probable (i.e. more likely than not) that an outflow of resources embodying economic benefits will be
required to settle the obligation, and a reliable estimate can be made of the amount of the obligation. Provisions are
reviewed at each balance sheet date and adjusted to reflect the current best estimate. Where the effect of the time value of
money is material, the amount of a provision is the present value of the expenditures expected to be required to settle the
obligation.
l. Other Accounting and Valuation Principles
Financial Instruments
Financial assets and financial liabilities carried on the balance sheet include cash and cash equivalents, marketable
securities, trade and other accounts receivable and payable, long-term receivables, borrowings and investments. The
accounting policies on recognition and measurement of these items are disclosed in the respective accounting policies
found in these notes.
Financial instruments are classified as assets or liabilities in accordance with the substance of the contractual arrangement.
Therefore interest, dividends, gains and losses relating to these financial instruments classified as an asset or a liability are
reported as expense or income. Financial instruments are offset when the Group has a legally enforceable right to offset
and intends to settle either on a net basis or to realise the asset and settle the liability simultaneously.
/ andritz 2002
98
Hedging
The Group uses forward exchange contracts to mitigate exposure to foreign currency risk out of projects and regularly
business in foreign currency. According to the Group’s hedging policy all forward contracts are used for highly probable
future Cash flows for these projects or regularly sales and can therefore be classified as cash flow hedges. Changes in the
fair value of a hedging instrument that qualifies as a highly effective cash-flow hedge are recognised directly in the hedging
reserve in shareholders’ equity. If the hedged cash flow results in the recognition of an asset or a liability, all gains or losses
previously recognised directly in equity are transferred from equity and included in the initial measurement of the cost or
carrying value of the asset or liability. Otherwise, for all other cash-flow hedges, gains and losses initially recognised in
equity are transferred from hedging reserve to net profit or loss in the same period or periods during which the hedged firm
commitment or forecast transaction affects the income statement.
When the committed or forecast transaction is no longer expected to occur, any net cumulative gain or loss previously
reported in equity is transferred to the income statement.
All investments in a foreign entity are long-term investments and presently a sale of such investments is not expected to
occur in the foreseeable future. According to the Group’s hedging policy there are no hedges of net investments in foreign
currencies.
Derivative financial instruments

All derivative financial instruments are designated as hedging instruments. Fixed forward exchange rate contracts are used
for hedging of currency risks and interest swaps are used for hedging of interest risk.
Research and development costs

Expenditures for research and development are charged against income in the period incurred because the criteria for
capitalisation (IAS 38) are not met. In 2002 EUR 30,135 thousand and in 2001 EUR 18,425 thousand have been recognised
as an expense.
Revenue recognition (except for construction contracts)

Revenue is recognised when it is probable that the economic benefits associated with the transaction will flow to the
enterprise and the amount of the revenue can be measured reliably. Sales are recognised net of sales taxes and discounts
when delivery has taken place and transfer of risks and rewards has been completed.
Interest is recognised on a time proportion basis that reflects the effective interest rate of the asset. Dividends are
recognised when the shareholders’ right to receive payment is established.
Borrowing costs
Borrowing costs are generally expensed as incurred.
Impairment of assets
Property, plant and equipment and intangible assets are reviewed for impairment whenever events or changes in
circumstances indicate that the carrying amount of an asset may not be recoverable. Whenever the carrying amount of an
asset exceeds its recoverable amount, an impairment loss is recognised in income for items of property, plant and
equipment and intangibles carried at cost. Recoverable amounts are estimated for individual assets or, if it is not possible,
for the cash-generating unit.
/ andritz 2002
99
m. Foreign currency
Foreign currency transactions

Foreign currency transactions are recorded in the reporting currency by applying to the foreign currency amount the exchange
rate between the reporting currency and the foreign currency at the date of the transaction. Exchange rate differences arising on
the settlement of monetary items at rates different from those at which they were initially recorded during the periods are
recognised in the income statement in the period in which they arise.
Foreign entities
Foreign consolidated subsidiaries are regarded as foreign entities since they are financially, economically and orga-
nisationally autonomous. Their reporting currencies are their respective local currencies. Financial statements of foreign
consolidated subsidiaries are translated at year-end exchange rates with respect to the balance sheet. Expense and
revenue items are translated using the average exchange rates for the year. All resulting translation differences are included
in a currency translation reserve in equity.
Any goodwill arising on the acquisition of a foreign entity is recorded using the exchange rate at the effective date of the
transaction. Exchange differences arising on a monetary item that, in substance, forms part of the Group’s net investment
in a foreign entity are classified as equity in the consolidated financial statements until disposal of the net investment.
n. Employee Benefits
Defined benefit plans (provisions for pensions)

Some Group companies provide defined benefit pension plans for certain employees. The funds are valued every year by
professionally qualified independent actuaries. The obligation and costs of pension benefits are determined using a
projected unit credit method. The projected unit credit method considers each period of service as giving rise to an
additional unit of benefit entitlement and measures each unit separately to build up the final obligation. Past service costs
are recognised on a straight-line basis over the average period until the amended benefits become vested. Gains or losses
on the curtailment or settlement of pension benefits are recognised when the curtailment or settlement occurs. Actuarial
gains or losses are amortised based on the expected average remaining working lives of the employees. The pension
obligation is measured at the present value of estimated future Cash flows using different discount rates for different
countries.
In 1999 part of the pension obligations were transferred to a multi-employer pension fund. These pension obligations were
accounted as a defined contribution plan, although the obligations met the criteria of a defined benefit plan. All surplus or
deficit in the plan will affect the future contributions of the Group. No material amounts are expected out of future deficits,
as the initial funding seems to be sufficient to cover future deficits. Other Group companies provide defined contribution
plans for certain employees. The related costs are expensed as they occur.
Severance payments
In certain countries the Group is also obliged by law to pay termination indemnities in some cases of termination of
employment. No termination indemnities are payable for voluntary termination at the request of the employee. Expenses
related to termination indemnities are accrued.
o. Income taxes
The income tax charge is based on profit for the year and considers deferred taxation. Deferred taxes are calculated using
the balance sheet liability method. Deferred income taxes reflect the net tax effects of temporary differences between the
carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes.
/ andritz 2002
Deferred tax assets and liabilities are measured using the tax rates expected to apply to taxable income in the years in which
those temporary differences are expected to be recovered or settled, based on tax rates (and tax laws) that have been
100
enacted or substantively enacted by the balance sheet date. The measurement of deferred tax liabilities and deferred tax
assets reflects the tax consequences that would follow from the manner in which the enterprise expects, at the balance
sheet date, to recover or settle the carrying amount of its assets and liabilities.
Deferred tax assets and liabilities are recognised regardless of when the timing difference is likely to reverse.
Deferred tax assets are recognised when it is probable that sufficient taxable profits will be available against which the
deferred tax assets can be utilised. At each balance sheet date, the Group reassesses unrecognised deferred tax assets
and the carrying amount of deferred tax assets. The enterprise recognises a previously unrecognised deferred tax asset to
the extent that it has become probable that future taxable profit will allow the deferred tax asset to be recovered. The Group
conversely reduces the carrying amount of a deferred tax asset to the extent that it is no longer probable that sufficient
taxable profit will be available to allow the benefit of part or all of that deferred tax asset to be utilised.
Deferred tax is charged or credited directly to equity if the tax relates to items that are credited or charged, in the same or
a different period, directly to equity, including exchange differences arising on the translation of inter-company loans.
E. Segments
Business segments
For management purposes the Group is organised on a worldwide basis into four major operating businesses. The
strategic business units are the basis upon which the Group reports its primary segment information. Financial information
on business and geographical segments is presented in section I (see "segment information” below). There are no material
inter-segment transactions. All consolidation entries are included in the relevant segment. According to the monthly
reporting scheme, which is the basis for the primary segment information, all sales and all direct and indirect expenses
(including overhead and administrative costs) are allocated to business segments.
Net segmental assets consist of:
intangible fixed assets, property, plant and equipment;

current assets not including cash and cash equivalents and marketable securities; and
liabilities not including interest bearing borrowings of each segment.
F. Contingencies
Contingent liabilities are not recognised in the financial statements. They are disclosed unless the possibility of an outflow
of resources embodying economic benefits is remote.
A contingent asset is not recognised in the financial statements but disclosed when an inflow of economic benefits is
probable.
/ andritz 2002
101
G. Notes to the Balance Sheet
1. Changes in fixed and financial assets
Acquisition or Production Costs
Balance Changes Balance

as at Currency due to as at
1 January translation business 31 December
(in TEUR) 2002 differences Additions Disposals acquisitions Transfers 2002
Concessions, industrial rights and

similar rights and values 27,226 (1,395) 2,469 1,341 0 36 26,995
Advance payments on
intangible assets 0 0 0 0 0 0 0
Total intangible assets 27,226 (1,395) 2,469 1,341 0 36 26,995
Goodwill 260,176 (23,475) 7,514 0 0 0 244,215
Land and buildings 133,607 (5,897) 4,621 1,013 0 1,041 132,359

Technical equipment and machinery 140,278 (8,617) 5,001 6,440 381 9,850 140,453
Other equipment, factory and office
equipment 79,391 (4,516) 8,117 6,588 0 (9,889) 66,515
Assets in course of construction 426 (33) 2,544 177 0 (128) 2,632
Advance payments on
tangible assets 112 (1) 235 0 0 (111) 235
Total property, plant and equipment 353,814 (19,064) 20,518 14,218 381 763 342,194
Shares in affiliated companies 333 0 0 1 0 0 332

Other investments (participations) 188 (1) 0 0 0 27 214
Shares in associated companies 3,276 15 496 403 0 0 3,384
Loans to associated companies 0 0 164 0 0 0 164
Other loans 488 (4) 2 38 0 0 448
Non-current securities 11,141 (240) 1,639 16 0 (1,239) 11,285
Advance payments on financial
assets 4 0 0 0 0 0 4
Total financial assets 15,431 (231) 2,301 458 0 (1,212) 15,831
Total fixed and financial assets 656,647 (44,165) 32,802 16,017 381 (413) 629,235
/ andritz 2002
102
Depreciation and Amortisation
Balance Depreciation Changes Balance

as at Currency and amorti- due to as at
1 January translation sation for business 31 December
(in TEUR) 2002 differences the year Disposals acquisitions Transfers 2002
Concessions, industrial rights

and similar rights and values 21,317 (1,261) 2,548 1,297 0 37 21,344
Advance payments on intangible
assets 0 0 0 0 0 0 0
Total intangible assets 21,317 (1,261) 2,548 1,297 0 37 21,344
Goodwill 112,194 (15,133) 13,467 0 0 0 110,528
Land and Buildings 61,467 (3,460) 3,406 812 0 1,039 61,640

Technical equipment
and machinery 104,434 (6,323) 8,063 5,326 0 9,552 110,400
Other equipment, factory
and office equipment 61,137 (3,655) 8,124 6,260 0 (9,871) 49,475
Assets in course of construction 0 0 0 0 0 0 0
Advance payments on tangible
assets 0 0 0 0 0 0 0
Total property, plant
and equipment 227,038 (13,438) 19,593 12,398 0 720 221,515
Shares in affiliated companies 307 0 0 0 0 0 307

Other investments (participations) 50 0 0 0 0 0 50
Shares in associated companies 0 0 0 0 0 0 0
Loans to associated companies 0 0 0 0 0 0 0
Other loans 358 1 7 0 0 0 366
Non-current securities (132) 0 108 0 0 0 (24)
Advance payments
on financial assets 0 0 0 0 0 0 0
Total financial assets*) 583 1 115 0 0 0 699
Total fixed and financial assets 361,133 (29,832) 35,723 13,695 0 757 354,086
*) Impairment losses
/ andritz 2002
103
Net book value
Costs as at Net book value Net book value

31 December Accumulated as at 31 Decem- as at 31 Decem-
(in TEUR) 2002 depreciation ber 2002 ber 2001
Concessions, industrial rights and

similar rights and values 26,995 21,344 5,651 5,909
Advance payments on intangible assets 0 0 0 0
Total intangible assets 26,995 21,344 5,651 5,909
Goodwill 244,215 110,528 133,687 147,982
Land and buildings 132,359 61,640 70,719 72,140

Technical equipment and machinery 140,453 110,400 30,053 35,844
Other equipment, factory and office equipment 66,515 49,475 17,040 18,254
Assets in course of construction 2,632 0 2,632 426
Advance payments on tangible assets 235 0 235 112
Total property, plant and equipment 342,194 221,515 120,679 126,776
Shares in affiliated companies 332 307 25 26

Other investments (participations) 214 50 164 138
Shares in associated companies 3,384 0 3,384 3,276
Loans to associated companies 164 0 164 0
Other loans 448 366 82 130
Non-current securities 11,285 (24) 11,309 11,273
Advance payments on financial assets 4 0 4 4
Total financial assets 15,831 699 15,132 14,848
Total fixed and financial assets 629,235 354,086 275,149 295,514
Impairment Loss
In 2001 certain units including buildings, machinery and equipment met the tests for impairment and these assets were
written down to their recoverable value which is their net selling price. Net selling price was determined using the best
estimate available for the disposal of these assets on an arm's length basis between knowledgeable willing parties. In
addition, impairment loss has been recognised in 2001 for intangible assets (patents and industrial rights) due to changed
production processes and changed market outlook.
In 2002 no additional write-offs due to impairment of assets have been considered but the existing write-offs remained
unchanged.
/ andritz 2002
104
Goodwill
(in TEUR) 2002 2001
Andritz Ahlstrom 47,609 60,174

Acquisition of Andritz AG 71,515 77,474
Other 14,563 10,334
133,687 147,982
2. Inventories
(in TEUR) 2002 2001
Finished goods 36,103 37,815

Work in progress 57,255 58,019
Raw materials 19,848 22,300
113,206 118,134
The shown inventories are valued at cost.
3. Advance payments made
The advance payments made and presented in the balance sheet relate to open purchase orders for contracts.
4. Trade Accounts Receivable
(in TEUR) 2002 2001
Accounts receivable 191,130 216,413

Allowance for doubtful accounts (2,886) (3,468)
188,244 212,945
/ andritz 2002
105
5. Construction contracts
(in TEUR) 2002 2001
Contract revenue recognised as sales in the period 675,097 858,147

Contract costs incurred and recognised profits
(less recognised losses) to date 902,772 1,023,539
Advances received and progress billings 954,853 806,560
Amount of retentions 1,118 860
The billings in excess of costs and earnings of projects under construction represent, primarily, payments from customers
for work, which is not performed yet.
6. Other Receivables
(in TEUR) 2002 2001
Receivables from associated companies 122 17

Other 39,871 34,187
39,993 34,204
7. Statement of Receivables
2002
Thereof Thereof
remaining term remaining term
(in TEUR) Total under 1 year over 1 year
Trade accounts receivable 188,244 188,074 170

Cost and earnings of projects under construction
in excess of billings 61,411 56,351 5,060
Other receivables 39,993 39,936 57
289,648 284,361 5,287
2001
Thereof Thereof
remaining term remaining term
(in TEUR) Total under 1 year over 1 year
Trade accounts receivable 212,945 205,904 7,041

Cost and earnings of projects under construction
in excess of billings 99,392 98,939 453
/ andritz 2002
Other receivables 34,204 34,082 121

346,541 338,925 7,616
106
8. Retained Earnings
Dividends
For 2002 a dividend of EUR 0.90 per outstanding share is proposed by the Managing Board. The dividend for 2001 of EUR
11,700 thousand which is equal to EUR 0,90 per share was proposed by the Managing Board and has been resolved at the
95th ordinary shareholders’ meeting on 17 April 2002. The dividend has been paid to the shareholders on 24 April 2002.
On 17 February 2003 the Managing Board authorised the consolidated financial statements for the year ended 31 December
2002 according to IFRS. On 25 February 2002 the management authorised the consolidated financial statements for the
year ended 31 December 2001 according to IFRS to be issued to its Supervisory Board. The Supervisory Board is made up
solely of nonexecutives and includes representatives of employees. The consolidated financial statements were presented
for information purposes only to the Supervisory Board and subsequently acknowledged by the meeting of shareholders.
The Supervisory Board and the meeting of shareholders acknowledged the consolidated financial statements.
Currency translation adjustment
Equity and shareholder loans in foreign currency are not hedged against currency risks because the investments are
considered to be permanent and the conversion to the reporting currency is not planned. Exceptions are made for planned
disposal of investments or planned repayments of shareholder loans. In 2002 a negative currency translation adjustment
arose from investments in foreign currency amounting to EUR 30,735 thousand mainly due to the change of the currency
exchange rate between Euro and Dollar compared to previous year. This currency translation adjustment has been directly
recognized in equity without income effect.
9. Provisions
Balance as Currency Balance as at

at 1 January translation Reclassi- 31 December
(in TEUR) 2002 differences fication Use Reversal Addition 2002
Provisions for severance

payments 23,467 (6) 32 33 10 3,395 26,845
Provisions for pensions 14,424 (441) 2,472 442 151 2,759 18,621
Longterm provisions 37,891 (447) 2,504 475 161 6,154 45,466
Other provisions 140,552 (6,265) (195) 35,140 15,837 38,853 121,968

Total 178,443 (6,712) 2,309 35,615 15,998 45,007 167,434
Other provisions consist primarily of order related provisions (2002: EUR 101,746 thousand; 2001: EUR 119,592 thousand).
The provisions for order related costs consist primarily of provisions for warranties and contingencies and are expected to
be incurred within the next three financial years.
/ andritz 2002
107
10. Employee Benefit Obligations
Defined benefit plan for pensions

Some Group companies in Austria, USA, Germany and Sweden provide defined benefit pension plans for some classes of
employees. Provisions for pension obligations are established for benefits payable in the form of retirement, disability and
surviving dependant pensions. The benefits offered vary according to the legal, fiscal and economic conditions of each
country. Benefits are dependent on years of service and in some cases on the respective employee’s compensation.
The following table reconciles the funded status of defined benefit plans to the amounts recognised in the balance sheet:
(in TEUR) 2002 2001
Present value of funded defined benefit obligations 16,562 16,437

Fair value of plan assets (398) (2,904)
16,164 13,534
Present value of unfunded defined benefit obligations 4,118 1,613

Unrecognised actuarial gains/losses (1,668) (740)
Unrecognised past service costs 7 16
Net liability in balance sheet 18,621 14,424
Pension expense is comprised of the following:
(in TEUR) 2002 2001
Current service costs 1,251 278

Interest expense on obligations 902 861
Expected return on plan assets (7) 0
Net actuarial gains/losses recognised 126 (90)
Past service costs 26 182
Effect of any curtailment or settlement 858 (344)
3,156 889
Payments to defined contribution plans 12,843 12,813
15,999 13,702
/ andritz 2002
108
Principal actuarial assumptions used to determine pension obligations as of 31 December were as follows:
(in per cent) 2002 2001
Discount rate 5.75% 6.5%

Expected return on plan assets 6.0% 8.5%
Wage and salary increases 3.0% 3.0%
Retirement benefit increases 2.5% 2.5%
In 1999 Andritz transferred some of the pension liabilities to a multi-employer pension fund. This pension plan is accounted
as a defined contribution plan although the obligations meet the criteria for a defined benefit plan. The plan covers some
full-time employees and provides for contribution ranging from 3% to 5% of salary.
Severance Payments
(in TEUR) 2002 2001
Present value of unfunded defined benefit obligations 26,845 23,468

Net liability in balance sheet 26,845 23,468
Severance expense is comprised of the following:
(in TEUR) 2002 2001
Current service costs 1,105 1,263

Interest expense on obligations 1,433 1,335
Net actuarial gains/losses recognised 2,784 (141)
Effect of any curtailment or settlement 0 0
5,322 2,458
Payments to defined contribution plans 0 397
5,322 2,855
Principal actuarial assumptions used to determine severance obligations as of 31 December were the same as used for
pension obligations.
/ andritz 2002
109
Management Share Option Plan

A selected group of executives employed by the Group as at 1 June 2001 were eligible to participate in a Management
Share Option Plan in connection with the Initial Public Offering. Each eligible executive who has subscribed shares having
an aggregate subscription value calculated at the Offer Price (21 EUR per share) of at least 20,000 EUR (each such
subscription a "Private Investment”) is eligible for a special remuneration in the form of option rights. These option rights
can be exercised provided that the average price of the shares during two separate assessment periods exceeds a certain
percentage of the Offer Price. The first assessment period will run for a period of three months preceding the second
anniversary of the initial listing of the shares on the Vienna Stock Exchange, whereas the second assessment period will run
for a period of three months preceding the third anniversary of the initial listing of the shares on the Vienna Stock Exchange.
If the average market value of the shares exceeds the Offer Price by 15% in the first assessment period (Option 1) or by
20% in the second assessment period (Option 2), the eligible executive will be entitled to purchase up to a maximum of
1,500, 2,500 and 5,000 shares with respect to Option 1 or Option 2 at the Offer Price depending on the seniority of the
relevant executive, provided that the relevant executive can prove uninterrupted ownership of his Private Investment until
the end of the assessment period. The options can be exercised only once and are not transferable. Option 2 can only be
exercised if during the first assessment period the average market value of the shares does not exceed the Offer Price by
15%, making the exercise of Option 1 impossible. The options can only be exercised at given times. Each participant may
subscribe up to 50% of the number of shares stated in the Average Price Notice immediately after exercise of the option
and payment of the pro-rata subscription price, the relevant participant can subscribe up to the remaining 25% of the shares
set out in the notice on the exercise of the option. At the end of a six-month term from the exercise of the option and
payment of the remaining subscription price, the relevant participant can subscribe up to the remaining 25% of the shares
set out in the notice on the exercise of the option.
Due to legal requirements, executives in the United States will not be allowed to make a Private Investment but will be
granted option rights. 35 executives are participating in the Management Share Option Plan, together they are eligible to
exercise options for the purchase of 113,000 shares. Andritz may either provide these shares by issue of new shares out
of authorised share capital or by repurchase of own shares.
/ andritz 2002
110
11. Statement of Liabilities
2002
Thereof Thereof Thereof

remaining remaining remaining
term under term between term over
(in TEUR) Total 1 year 1 and 5 years 5 years
Non-current interest bearing borrowings 610 0 610 0

Bond 100,000 0 0 100,000
Interest bearing borrowings 4,292 4,292 0 0
Trade accounts payable 84,129 81,173 2,956 0
Billings in excess of costs and earnings of projects
under construction 113,493 97,965 15,528 0
Advance payments received 30,931 30,931 0 0
Liabilities for current taxes 8,298 8,298 0 0
Other liabilities 125,700 123,497 1,846 357
467,453 346,156 20,940 100,357
2001
Thereof Thereof Thereof

remaining remaining remaining
term under term between term over
(in TEUR) Total 1 year 1 and 5 years 5 years
Non-current interest bearing borrowings 976 0 960 16

Interest bearing borrowings 47,494 47,494 0 0
Trade account payable 142,379 140,880 1,499 0
Billings in excess of costs and earnings of projects
under construction 94,823 94,440 383 0
Advance payments received 73,618 73,618 0 0
Liabilities for current taxes 3,540 3,540 0 0
Other liabilities 121,171 119,776 1,121 274
484,001 479,748 3,963 290
The interest bearing borrowings consist primarily of current bank loans at floating interest rates and fixed rates.
Property, plant and equipment amounting to EUR 375 thousand and EUR 419 thousand as at 31 December 2002 and 2001,
respectively, has been pledged as security for long-term debt.
12. Other Liabilities
(in TEUR) 2002 2001
Payables to affiliated companies 0 51

Payable to associated companies 42 436
Other personnel related costs 31,538 30,436
Other order related costs 32,473 31,985
Deferred income 875 3,200
Other 60,772 55,063
/ andritz 2002
125,700 121,171
111
H. Notes to the Consolidated Income Statement
13. Sales
(in TEUR) 2002 2001
Contract revenue recognised as sales in the period 675,097 858,147

Other 435,013 460,554
1,110,110 1,318,701
14. Other Operating Income
(in TEUR) 2002 2001
Profit on disposal of fixed assets excluding financial assets 502 1,749

Exchange rate gains 8,411 2,487
Rental income 1,303 1,268
Other 5,957 13,514
16,173 19,018
15. Personnel Expenses
(in TEUR) 2002 2001
Wages 51,215 65,320

Salaries 173,478 167,084
Pension expenses 15,999 13,702
Severance and termination expenses 5,322 6,627
Social security and payroll related duties 31,549 30,247
Other social payments 9,753 6,953
287,316 289,932
16. Other Operating Expenses
(in TEUR) 2002 2001
Exchange rate losses 7,706 4,899

Sales expenses 71,823 75,186
Administration expenses 19,996 22,455
Other 41,120 58,175
140,645 160,715
/ andritz 2002
112
17. Financial Results
(in TEUR) 2002 2001
Income / expenses from associated companies (46) 325
Other interest and similar income 6,996 10,495

Interest and similar expenses (6,675) (7,401)
Interest result 321 3,093
Income / expenses from investments 138 7

Impairment losses of financial assets (195) (30)
Income from write-ups of financial assets 79 163
Profit and disposal on disposal of short-term securities 0 2.184
Adjustment to market sales of short-term securities 172 (218)
Other income / expenses from financing activities 194 2.105

469 5,523
18. Income Tax
(in TEUR) 2002 2001
Current tax expense (15,078) (16,985)

Deferred tax income relating to the origination and
reversal of temporary differences (3,010) (5,650)
(18,088) (22,635)
Changes in the deferred income tax account consist of the following:
(in TEUR) 2002 2001
Tax assets 21,114 22,131

Tax provision for deferred taxes (39,605) (37,011)
Balance as at 31 December, as previously stated (18,491) (14,880)
Deferred taxes from changes in consolidation range 0 1,399
Deferred tax expense relating to the origination and
reversal of temporary differences
income statement charge (3,010) (5,650)
foreign exchange differences (2,938) 274
Tax effect on IAS 39 reserve (5,394) 938
Tax effect of foreign exchange translation differences 2,298 (572)
Reclassification without income effect (572) 0
(28,107) (18.491)
thereof
Deferred tax assets 17,696 21,114
Provisions for deferred taxes (45,803) (39,605)
/ andritz 2002
113
The reconciliation of the effective tax rate to the statutory tax rate is as follows:
(in TEUR) 2002 2001

Tax at the applicable tax rate (34% in 2002 and 2001) (15,550) (20,437)
Tax effect of income not taxable in determining taxable profit
(non-temporary differences) (5,478) (977)
Tax effect of
changes in valuation allowance 3,355 (2,421)
adjustment of using new tax rates (415) 1,200
(18,088) (22,635)
Tax charge per statutory book 15,078 16,985

Changes in deferred taxes (3,010) (5,650)
Income tax effects related to tax deductible IPO costs are directly recognised in capital reserve in equity.
Deferred tax assets and provisions for deferred taxes as at 31 December 2002 and 2001 are the result of the following
temporary valuation and accounting differences between book values in the IFRS consolidated financial statements and the
relevant tax bases:
2002 2001
Deferred tax Deferred tax
(in TEUR) asset provision asset provision
Intangible assets 1,431 (502) 2,197 (467)

Tangible assets 1,455 (10,034) 2,797 (9,702)
Financial assets 13 (92) 249 (150)
Inventories 127,794 (348) 140,946 (363)
Receivables 3,125 (13,792) 2,993 (22,239)
Short-term securities and shares 0 (3,742) 0 (537)
Other assets 0 (3) 1,562 (22)
133,818 (28,513) 150,744 (33,480)
Provisions 16,129 (13,813) 18,250 (5,804)
Liabilities 4,542 (137,314) 4,876 (152,649)
Deferred income 8,015 (387) 1 (687)
28,686 (151,514) 23,127 (159,140)
Tax loss carry-forwards 6,793 0 8,429 0
Deferred tax assets/provisions 169,297 (180,027) 182,300 (192,620)
Valuation allowance for deferred tax assets (13,616) 0 (6,502) 0
Other deferred taxes from consolidation 695 0 0 (2,607)
IAS 39 reserve 0 (4,456) 938 0
Offset within legal tax units and jurisdiction (138,680) 138,680 (155,622) 155,622
Net deferred tax assets and provisions 17,696 (45,803) 21,114 (39,605)
/ andritz 2002
114
19. Earnings per Share
Basic earnings per share (see Consolidated Income Statement) are calculated by dividing the net profit for the period
attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the period.
I. Segment Information
Segment information is prepared on the following basis:
Business Segments
The Andritz Group conducts the majority of its business activities in the following areas:
a. Pulp and Paper (P+P)
b. Rolling Mills and Strip Processing Lines (WB)
c. Environment and Process Technologies (EP)
d. Feed Technology (FT)
All other minor business activities are included in "Other”.
Geographical Segments
The Group’s activities are conducted predominantly in Europe, North America and Asia.
2002
Business Segment Data
(in TEUR) P+P WB EP FT Other Total
Sales 672,176 177,397 122,774 108,409 29,354 1,110,110

Segment result before amortisation
of goodwill 39,248 8,538 984 4,228 5,735 58,733
Net segmental assets 74,043 (3,635) 48,654 37,071 17,136 173,269
Capital expenditure 11,497 1,613 1,913 5,342 2,621 22,986
Depreciation and amortisation of tangible
and intangible fixed assets 14,216 2,536 1,789 1,916 1,684 22,141
Share of net profit / loss of associates (46) 0 0 0 0 (46)
Investment in associates 3,384 0 0 0 0 3,384
Geographical Segment Data
Rest of
the world
North and con-
(in TEUR) Europe America Asia solidation Total
External sales 498,749 280,509 190,195 140,657 1,110,110

Total assets 1,177,885 206,408 14,078 (488,506) 909,865
Capital expenditure 18,403 4,023 457 103 22,986
/ andritz 2002
115
2001
Business Segment Data
(in TEUR) P+P WB EP FT Other Total
Sales 882,992 167,391 135,309 107,000 26,009 1,318,701

Segment result before amortisation
of goodwill 53,852 6,131 7,225 920 (136) 67,992
Net segmental assets 166,658 2,996 43,161 35,238 8,223 256,275
Capital expenditure 10,772 3,445 1,919 6,704 863 23,703
Depreciation and amortisation of tangible
and intangible fixed assets 15,943 2,560 1,825 3,773 2,439 26,539
thereof impairment losses 2,730 0 79 315 1,213 4,337
Share of net profit / loss of associates 325 0 0 0 0 325
Investment in associates 3,276 0 0 0 0 3,276
Geographical Segment Data
Rest of
the world
North and con-
(in TEUR) Europe America Asia solidation Total
External Sales 607,485 367,563 187,711 155,943 1,318,701

Total Assets 1,161,553 158,581 4,932 (383,342) 941,724
Capital expenditure 20,070 3,208 78 347 23,703
J. Notes to Cash Flow Statements
Cash flows from Acquisition of Subsidiaries
(in TEUR) 2002 2001
Cash and cash equivalents (432) 0

Receivables (11,290) 0
Inventories (4,363) 0
Property, plant and equipment (1,644) 0
Accounts payable and accrued expenses 22,015 0
Net assets/liabilities acquired 4,286 0
Cash and cash equivalents 432 0
Goodwill (7,201) (2,807)
Changes in minority interests (4,546) (55,642)
Net cash flow (7,029) (58,449)
/ andritz 2002
116
K. Financial Instruments
a. Foreign exchange risk management

The Group only enters into fixed forward foreign exchange contracts in managing its foreign exchange risk resulting from
Cash flows from current business activities. Transaction risk is calculated in each foreign currency and includes currency
denominated assets and liabilities and certain off-balance sheet items such as highly probable future Cash flows for firm
commitments and highly probable purchases and sales. The currency risks of the Group occur due to the fact that the
Group operates and has production and sales in different countries worldwide. With the adoption of IAS 39, the Group has
designated its forward exchange contracts as cash flow hedges and carries them at fair value.
b. Liquidity risks
The Group’s policy is to maintain sufficient cash and cash equivalents or have available funding through an adequate amount
of credit facilities to meet its commitments. Any excess cash is invested mostly in listed securities which are actively traded.
c. Credit risks
Credit risks, or the risk of counterparties defaulting, are controlled by the application of credit approvals, limits and
monitoring procedures. Where appropriate, the corporation obtains guarantees from governmental export agencies or
similar private institutions to reduce the risk of a counterpart defaulting. Credit risk associated with the investment of liquid
funds and securities is limited by the fact that the Group works only with financial partners who can demonstrate sound
creditworthiness. For some financial assets and financial liabilities the Group has a legally enforceable right to set off. These
amounts are only reported on a net basis. For all existing risks, valuation allowances are included, so that the Managing
Board believes that no other credit risk will occur.
d. Interest risk
In June 2002 the company has issued a bond for a nominal value of 100 MEUR with a repayment period of 6 years and
nominal interest rate of 6% p.a. For this bond an interest swap has been used to hedge the risk from the fixed interest rate
of the bond. By this interest swap the fixed interest rate has been changed for the whole repayment period to a variable
interest rate based on 1 month’s Euribor.
The Managing Board believes that the exposure to interest rate risk of remaining financial assets and liabilities is negligible.
Consequently, additional derivative instruments for hedging of these interest risks are not used within the Group.
The weighted average effective interest rates at the balance sheet date were as follows:
2002 2001
Cash on current accounts 0.8% 1.4%

Short-term deposits 3.0% 3.3%
Securities, short-term 3.7% 4.8%
Securities, long-term 5.2% 6.1%
Overdraft on current accounts 4.7% 5.1%

Short-term loans 1.0% 3.5%
Long-term loans 3.7% 2.5%
Bond 4.2% -
/ andritz 2002
117
e. Fair Value of Financial Instruments
Fair Value Estimation

The fair value of forward foreign exchange contracts is determined using forward exchange market rates at the balance
sheet date. The fair values of the forward contracts are confirmed to the Group by financial institutions.
At the balance sheet date, the fair values of forward contracts designated as cash flow hedges were as follows:
Remaining period
not exceeding more than Total Total
(in TEUR) 1 year 1 year 2002 2001
Forwards used to hedge anticipated sales US dollars 8,706 889 9,595 (3,874)
Swedish crowns 27 0 27 1,361
Singapore dollars 185 2,959 3,144 0
Other currencies 20 9 29 (198)
Forwards used to hedge firm purchase commitments US dollars 322 0 322 368
Other currencies (11) 0 (11) (416)
9,249 3,857 13,106 (2,759)
Fair values of forward contracts designated as cash flow hedges are classified as current assets or liabilities.
(in TEUR) 2002 2001
Forward contracts with positive fair values 13,328 2,749

Forward contracts with negative fair values (222) (5,508)
13,106 (2,759)
The Group’s principal financial instruments not carried at fair value are trade receivables, other current assets, other non
current assets, trade and other payables, bank overdrafts, long-term borrowings.
Cash and cash equivalents, current investments and other non-current financial assets
The carrying amount of cash and other financial assets approximates fair value due to the relatively short-term maturity of
these financial instruments.
Non-current and current securities

The fair values of publicly traded instruments are stated based on quoted market prices. For all other instruments for which
there are no quoted market prices, a reasonable estimate of fair value has been calculated based on the expected cash
flows or the underlying net asset base for each investment. Non-current securities of the Group are classified as "available
for sale” and are valued at their quoted market price at the balance sheet date.
Receivables and payables

The historical cost carrying amounts of receivables and payables which are all subject to normal trade credit terms
/ andritz 2002
approximate their fair values.
118
Short-term borrowings
The carrying amount approximates fair value because of the short period to maturity of those instruments.
Long-term borrowings
The fair value of the long-term debts is based on the current rates available for debt with the same maturity profile. The fair
value of non-current borrowings and other payables with variable interest rates approximates their carrying amounts.
The carrying amount is equal to the estimated fair value of the Group’s financial instruments. The interest risk of the bond
has been hedged by an interest swap. Management believes that the exposure to interest rate risk of the remaining financial
assets and liabilities is negligible.
IAS 39 reserve
The table below shows the movements in the hedging reserve in equity in respect to gains and losses on forward contracts
designated as cash flow hedges during the period.
(in TEUR) 2002 2001
Balance as at 1 January (1,821) (325)
Movements in the period:

Gains and losses from changes in fair value 13,227 (2,708)
Deferred income taxes thereon (4,497) 921
Transfers to income statement 2,638 441
Deferred income taxes thereon (897) (150)
Balance as at 31 December 8,650* (1,821)*
*) In the hedging reserve acc. to the Consolidated Statement of Shareholders’ Equity, an additional amount of EUR 49 thousand is included which
arises from the valuation of available-for-sales investments.
/ andritz 2002
119
L. Leases
The Group and its subsidiaries have entered into various operating lease agreements for machinery, offices and other
facilities as lessees. Lease terms do not contain restrictions on the Group’s activities concerning dividends, additional debt
or further leasing. Rent expense amounts to EUR 8,143 thousand in 2002 and EUR 7,850 thousand in 2001 respectively.
Future lease payments under non-cancelable operating lease are as follows:
(in TEUR) 2002 2001
Next year 3,651 2,892

1 year to 5 years 7,739 6,969
After 5 years 157 160
11,547 10,021
M. Commitments
Commitments arising from contracts for expenditure on property, plant and equipment are only in the normal course of
business. For 2002 these commitments amount to EUR 862 thousand and for 2001 to EUR 1,523 thousand.
N. Contingent Liabilities
a. Litigation
Various legal actions and claims are pending or may be asserted in the future against Group companies from litigations and
claims incidental to the ordinary course of business. These mainly include matters relating to warranties and infringement
on intellectual property rights. Related risks have been analysed as to likelihood of occurrence. Although the outcome of
these matters cannot always be ascertained with precision the Managing Board believes that no material liabilities are likely
to result.
Andritz Inc. is one of many defendants in thirty multi-plaintiff lawsuits pending in courts of two states of the United States
alleging personal injury, wrongful death and related claims from exposure to asbestos. No plaintiff alleges any specific
exposure to any product supplied by Andritz. However, the claims against Andritz appear to involve alleged exposure to
asbestos at pulp and paper mills. The Directors do not believe that these lawsuits against Andritz are meritorious in that any
asbestos that may have been contained in certain components enclosed within products it supplied to pulp and paper mills
was totally encapsulated thereby preventing the release of asbestos fibers. Nevertheless, little or no discovery has been
taken in the pending cases, and the actual facts with respect to individual claims are not known. Nine earlier multi-plaintiff
suits against Andritz were voluntarily dismissed, and Andritz obtained summary judgment against plaintiffs in two others.
There have been no verdicts or judgments against Andritz nor has it paid any amount to settle any asbestos lawsuit. The
Directors further believe that any liability of Andritz in connection with these lawsuits is within the terms of indemnity
obligations to Andritz from prior owners of the relevant businesses and one or more insurance policies.
/ andritz 2002
120
b. Other
(in TEUR) 2002 2001
Outstanding bank guarantees concerning contracts with customers 108,532 167,697

Other contingent liabilities 7,520 15,505
According to several contracts the customer is entitled to hold retention until the end of the warranty period. In order to
redeem these retentions bank guarantees were submitted to the customer. In addition, other bank and company guarantees
were issued as guarantees for advance and progress payments from customers. The management believes that the
provisions for warranties and the shown liabilities are sufficient. No additional financial outflows from these guarantees are
expected. In some cases Andritz has similar retention agreements with suppliers. In order to settle these retentions Andritz
receives bank guarantees from the suppliers.
O. Related Party Transactions
Only minor business relations exist with the shareholders. The shareholders are:
Carlyle Europe Partners LP 31%

Certus Beteiligungs-GmbH 25%
Unternehmens Invest AG and Univest 13%
GE Capital Equity Holdings BV 6%
Deutsche Beteiligungs AG 6%
Management 3%
Free Float 16%
Emoluments of the Managing Board
A provision of EUR 4,165 thousand in 2002 (EUR 3,948 thousand in 2001) has been recorded for pensions of former
members of the Managing Board and their dependants; the current year expense for these pensions amounted to EUR 504
thousand (EUR 231 thousand in 2001).
Directors’ total remuneration for 2002 amounted to EUR 3,772 thousand (thereof EUR 2,791 thousand for profit related
bonuses) and for 2001 to EUR 2,351 thousand.
/ andritz 2002
121
P. List of Consolidated Subsidiaries
Place of Incorporation Ownership interest

direct indirect
Material Affiliated Companies
Andritz Denmark A/S Esbjerg/Denmark 100%

Sprout-Matador A/S Esbjerg/Denmark 100%
Andritz (USA), Inc. Arlington/Texas (USA) 100%
Andritz Inc. Muncy/Pennsylvania (USA) 100%
Andritz-Ruthner, Inc. Arlington/Texas (USA) 100%
Durametal Corporation Tualatin/Oregon (USA) 100%
Guinard Centrifugation S.A. Vélizy/France 100%
Andritz S.A. Vélizy/France 100%
Andritz Selas S. A. S. Gennevilliers/France 100%
Andritz Ingeniería S.A. San Sebastian/Spain 100%
Andritz GmbH Hemer/Germany 100%
Sundwig GmbH Hemer/Germany 75%
Andritz Ltda. Sao Paulo/Brazil 100%
Andritz Oy Hollola/Finland 100%
Andritz Ltd./Ltée. Montreal/Canada 100%
Andritz Fiber Drying Ltd. Lasalle/Canada 100%
Andritz AB Örnsköldsvik/Sweden 100%
Andritz Fiber Drying AB Växjö/Sweden 100%
Andritz Ltd. Chesterfield/UK 100%
Andritz-Kenflo Foshan Pump Co. Ltd. Foshan/China 60%
U.M.T. Limited Hull/UK 100%
U.M.T. Deurne B.V. Deurne/Netherlands 100%
U.M.T. Boxtel B.V. Boxtel/Netherlands 100%
Andritz Brasil Ltda. Curitiba/Brazil 100%
Graz, 17 February 2003
Wolfgang Leitner Markku Hänninen Franz Hofmann Friedrich Papst Bernhard Rebernik
/ andritz 2002
122
Report of the Supervisory Board of Andritz AG
The Supervisory Board was regularly informed by the Managing Board both verbally and in writing of the situation of
the company and of its development as well as of major business transactions. The transactions that were subject
to approval by the Supervisory Board were investigated and reviewed together with the Managing Board.
The Financial Statement of Andritz AG and the Consolidated Financial Statements as of December 31, 2002 as well
as the Status Reports for 2002 were audited (also including the accounts) by AUDITOR TREUHAND GMBH, Vienna,
who had been appointed as auditors by the Meeting of Shareholders and who certified the Financial Statements.
The Supervisory Board has examined the Financial Statements certified by the Auditors as well as the proposed
appropriation of profit and the report of the Managing Board and concurs with the result of the Audit.
The Supervisory Board has approved the Financial Statement, which is herewith adopted in compliance with Article
125 para. 2 of the Corporation Act.
Graz, February 2003
Kurt Stiassny
Chairman of the Supervisory Board
/ andritz 2002
123
Andritz Group Companies
Pulp and Pape
Mecha
Activities*) Wood Processing Kraft Mill Systems Services Pulpin
EUROPE Austria Andritz AG, Graz S, M, SE, R ▲
Andritz AG, Vienna S, R, SE ▲ ▲ ▲
Denmark Sprout-Matador A/S, Esbjerg S, M, SE, R
Sprout-Matador A/S, Vejle S, R
England Andritz Ltd., Chesterfield S, SE
UMT Ltd., Hull S, M, SE
Frisby Extrusion Services Ltd., Corby S, M, SE
Andritz Selas Engineering Ltd., Belper SE
Finland Andritz Oy, Helsinki S, SE ▲ ▲
Andritz Oy, Hollola S, M, SE, R ▲ ▲
Andritz Oy, Kotka S, M, SE, R ▲ ▲
Andritz Oy, Savonlinna S, M, SE, R ▲ ▲
Andritz Oy, Varkaus S, M, SE, R ▲ ▲
France Andritz-Guinard S.A.S., Vélizy S
Andritz-Guinard S.A.S., Schweighouse S, SE ▲ ▲ ▲
Andritz-Guinard S.A.S., Châteauroux M, SE, R
UMT S.A., St. Martin Le Beau S, SE
Andritz Selas S.A.S., Gennevilliers SE
Germany Andritz GmbH, Hemer S, SE
Andritz GmbH, Haan S, SE
Andritz GmbH, Kirchheim/Teck S, SE ▲ ▲ ▲
UMT, Mettmann S, SE
Sundwig GmbH, Hemer S, M, SE, R
Netherlands UMT Deurne B.V., Deurne S, M, SE, R
UMT Boxtel B.V., Boxtel S, M, SE, R
Thermtec B.V., Rotterdam S, SE, R
Poland Andritz AG, Warsaw S ▲ ▲ ▲
Russia LLC Andritz, St. Petersburg S, SE ▲ ▲ ▲
Spain Andritz Ingeniería S.A., Madrid S, SE
Andritz Ingeniería S.A., Barcelona S, SE ▲ ▲ ▲
Switzerland Andritz 3Sys AG, Wohlen S, SE, R
Sweden Andritz AB, Örnsköldsvik S, SE ▲ ▲
Andritz AB, Hedemora S, SE
Andritz AB, Karlstad SE ▲
Andritz AB, Stockholm S, SE ▲ ▲
Andritz Fiber Drying AB, Växjö S, SE, R
AMERICAS Brazil Andritz Ltda., São Paulo S ▲
Andritz Ltda., Curitiba S, SE ▲ ▲
Andritz Ltda., Carapina SE ▲
Sprout-Matador do Brasil Ltda., Porto Alegre/RS S, SE
Chile Sprout-Matador A/S Chile Ltda., Puerto Montt S, SE ▲
Canada Andritz Ltd./Ltée., Montreal, QC S, SE ▲ ▲
Andritz Ltd./Ltée., Brantford, ON SE ▲
Andritz Ltd./Ltée., Edmonton, AB SE ▲
Andritz Fiber Drying Ltd., La Salle, QC S, M, SE, R
USA Andritz Inc., Alpharetta, GA S, SE ▲ ▲ ▲
Andritz Inc., Muncy, PA S, M, SE ▲
Andritz Inc., Glens Falls, NY S, SE, R ▲ ▲
Andritz Inc., Springfield, OH R
Andritz Inc., Pell City, AL SE, M ▲
Andritz Inc., Lenexa, KS SE
Andritz Inc., Ventura, CA SE ▲
Andritz-Ruthner, Inc., Arlington, TX S, M, SE, R
Andritz-Ruthner, Inc., Canonsburg, PA S, SE
Andritz Inc., Tualatin, OR M, SE
Voith Andritz Tissue LLC, Janesville, WI S, SE
ASIA China Andritz-Kenflo Foshan Pump Co., Ltd., Foshan S, M, SE
Andritz AG Representative Office Beijing S, SE ▲ ▲ ▲
Andritz Technologies Ltd., Foshan S, M, SE
India Andritz Technologies Pvt. Ltd., Bangalore S
Andritz Oy India Liaison Office, New Delhi S, SE ▲ ▲ ▲
Enmas Andritz Private Limited, Chennai S, M, SE ▲
Indonesia PT. Andritz, Jakarta S, SE ▲ ▲ ▲
Japan Andritz K.K., Tokyo S, SE ▲ ▲ ▲
/ andritz 2002
Singapore Andritz Singapore Pte. Ltd. S

Thailand Andritz Oy, Bangkok SE ▲
AUSTRALIA Andritz Pty. Ltd., Dandenong South S, SE ▲
New Zealand Andritz Australia Pty. Ltd, Auckland S, SE ▲ ▲ ▲
AFRICA South Africa Andritz (Pty) Ltd., Durban S, SE ▲ ▲ ▲
124
*) S=Sales, M=Manufacture, SE=Service, R=Research & Development
er Business Area
Rolling Mills and Environment Feed Hydraulic
anical Fiber Preparation Strip Processing and Process Technology Machines
ng Systems Systems Tissue Machines Services Lines Technologies
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/ andritz 2002
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125
Addresses of the Andritz Group
Europe
Austria
Andritz AG Phone: +43 1 81 195 0 - Kraft Mill Systems
Stattegger Strasse 18 Fax: +43 1 81 37 645 Phone: +43 1 81 195 6235
8045 Graz E-Mail: welcome@andritz.com Fax: +43 1 81 195 6301
Austria
Phone: +43 316 6902 0 - Rolling Mills and Anstalt für Strömungsmaschinen
Fax: +43 316 6902 415 Strip Processing Lines Gesellschaft mbH
E-Mail: welcome@andritz.com Phone: +43 1 81 195 0 Andritzer Reichsstrasse 68B
Fax: +43 1 81 37 645 8045 Graz
Andritz AG Austria
Eibesbrunnergasse 20 - Mechanical Pulping Systems Phone: +43 316 692 728 0
1120 Vienna Phone: +43 1 81 195 0 Fax: +43 316 691 575
Austria Fax: +43 1 81 55 358 E-Mail: welcome@astroe.at
Denmark
Sprout-Matador A/S Sprout-Matador A/S
Glentevej 5-7 Skomagervej 12
6705 Esbjerg 7100 Vejle
Denmark Denmark
Phone: +45 72 160 300 Phone: +45 72 160 300
Fax: +45 72 160 301 Fax: +45 72 160 390
E-Mail: welcome@sprout-matador.dk E-Mail: welcome@sprout-matador.dk
England
Andritz Ltd. Phone: +44 1482 825119 Andritz Selas Engineering Ltd.
Unit B, Sheepbridge Centre Fax: +44 1482 839806 Suite 5L, Business Centre
Sheepbridge Lane, Chesterfield E-Mail: sales.equipment.hull@ North Mill, Bridgefoot
Derbyshire, S41 9RX umt-group.com Belper, Derbyshire, DE56 1YD
England England
Phone: +44 1246 260660 Frisby Extrusion Services Ltd. Phone: +44 1773 829954
Fax: +44 1246 260760 Tyson Courtyard, Cronin Road Fax: +44 1773 829985
E-Mail: welcome@andritzltd.com Weldon South Ind. Est. E-Mail: selasuk@compuserve.com
Corby, Northants, NN18 8AZ
UMT Ltd. England
Stockholm Road, Phone: +44 1536 263 545
Sutton Fields, Industrial Estate Fax: +44 1536 205 184
Hull, HU7 0XL E-Mail: welcome@fes-ltd.com
England
Finland
Andritz Oy Phone: +358 20 450 5555 - Kraft Mill Systems
Tammasaarenkatu 1 Fax: +358 20 450 6711 Fax: +358 20 450 5190
00180 Helsinki E-Mail: woodprocessing@
Finland andritz.com - Fiber Preparation Systems
Phone: +358 20 450 5555 Fax: +358 20 450 5422
Fax: +358 20 450 5109 Andritz Oy
E-Mail: finland@andritz.com Kyminlinnantie 6 - Pulp and Paper Mill Services
48600 Kotka Address: Lasimestarintie 5
Andritz Oy Finland Fax: +358 20 450 5048
Keskikankaantie 9 Phone: +358 20 450 5555
15860 Hollola Fax: +358 20 450 5540
Finland E-Mail: finland@andritz.com
/ andritz 2002
126
Finland
Europe
Andritz Oy - Pulp and Paper Mill Services - Pulp and Paper Mill Services
Lypsyniemenkatu 5 Fax: +358 20 450 6446 Relanderinkatu 2
57200 Savonlinna Fax: +358 20 450 5975
Finland Andritz Oy
Phone: +358 20 450 5555 Relanderinkatu 2 - Päivärinne Works
Fax: +358 20 450 6220 78200 Varkaus Kiertotie 21-23
E-Mail: finland@andritz.com Finland Fax: +358 20 450 5977
Phone: +358 20 450 5555
- Works Fax: +358 20 450 5974 - Heat Exchanger Business
Fax: +358 20 450 6239 E-Mail: finland@andritz.com Kiertotie 21-23
Fax: +358 20 450 5970
- Kraft Mill Systems - Kraft Mill Systems
Fax: +358 20 450 6336 Relanderinkatu 2
Fax: +358 20 450 5974
- Fiber Preparation Systems
Fax: +358 20 450 6384
France
Andritz-Guinard S.A.S. Andritz-Guinard S.A.S. Andritz Selas S.A.S.
2-4 Avenue de l’Europe – Bât. A Allée de la Garenne – Z.I. Parc Technologique
78140 Vélizy-Villacoublay Le Buxerioux des Barbanniers
France 36000 Châteauroux 3/5, Place du Village
Phone: +33 1 39 26 05 50 France 92632 Gennevilliers, Cedex
Fax: +33 1 39 26 05 60 Phone: +33 2 54 61 3333 France
E-Mail: welcome.fra@andritz.com Fax: +33 2 54 61 3300 Phone : +33 1 46 13 99 99
E-Mail: welcome.fra@andritz.com Fax : +33 1 40 85 84 33
Andritz-Guinard S.A.S. E-Mail: sales@selas.fr
Z.I. Zinsel UMT S.A.
67590 Schweighouse sur Moder Site d’Activités des Grillonnières
France 37270 Saint Martin Le Beau
Phone: +33 3880 72730 France
Fax: +33 3880 72732 Phone : +33 247 50 6364
E-Mail: welcome.fra@andritz.com Fax : +33 247 50 2066
E-Mail: sales.france@umt-group.com
Germany
Andritz GmbH Andritz GmbH Phone: +49 2104 91970
Stephanopeler Strasse 22 Zweigniederlassung Kirchheim Fax: +49 2104 12054
58675 Hemer-Sundwig Heinkelstrasse 19-21 E-Mail: sales.germany@umt-
Germany 73230 Kirchheim/Teck group.com
Phone: +49 2372 96 96 0 Germany
Fax: +49 2372 96 96 50 Phone: +49 7021 50 74 0 Sundwig GmbH
E-Mail: welcome@hem.andritz.com Fax: +49 7021 50 74 10 Stephanopeler Strasse 22
E-Mail: roswitha.ruckdaschel@ 58675 Hemer-Sundwig
Andritz GmbH andritz.com Germany
Büro Haan Phone: +49 2372 54 0
Pfalzstraße 1 Universal Milling Technology Fax: +49 2372 54 200
42781 Haan eine Zweigniederlassung der E-Mail: welcome@sundwig.de
Germany Andritz GmbH
Phone: +49 2129 3750-0 Industriestrasse 15a
Fax: +49 2129 3750-50 40822 Mettmann
E-Mail: welcome.haan@andritz.com Germany
Netherlands
UMT Deurne B.V. UMT Boxtel B.V. Thermtec B.V.
Indumastraat 9 -13 Ladonkseweg 1b Wijnhaven 76
5753 RJ Deurne 5281 RN Boxtel 3011 WT Rotterdam
Netherlands Netherlands Netherlands
Phone: +31 493 314344 Phone: +31 411 653500 Phone: +31 10 413 7628 /
Fax: +31 493 310030 Fax: +31 411 653505 10 280 1660
E-Mail: sales.deurne@umt- E-Mail: sales.equipment.boxtel@ Fax: +31 10 404 7356
/ andritz 2002
group.com umt-group.com E-Mail: welcome@thermtec.nl
127
Europe
Poland Russia
Andritz AG Phone: +48 22 87399 40 LLC Andritz
Spólka Akcyjna Fax: +48 22 87399 39 4th Krasnoarmeiskaya Street 4A
-
Przedestawicielstwo w Polsce E-Mail: jacek.kabat@andritz.com 198005 St. Petersburg
Aleje Jerozolimskie 214 Russia
02 - 486 Warsaw Phone: +7 812 316 0913
Poland Fax: +7 812 110 1582
Spain Switzerland
Andritz Ingeniería S.A. Andritz Ingeniería S.A. Andritz 3Sys AG
Agustin y Antonia, 12 Calle Riera, 11-bajos Oberdorfweg 9
28700 S. Sebastián de los Reyes 08190 Sant Cugat del Vallés 5610 Wohlen
Madrid Barcelona Switzerland
Spain Spain Phone: +41 56 618 46 80
Phone: +34 91 663 6409 Phone: +34 93 674 9482 Fax: +41 56 618 46 81
Fax: +34 91 651 1931 Fax: +34 93 674 9315 E-Mail: mail@3sys.ch
E-Mail: andritz@andritz.net
Sweden
Andritz AB Andritz AB Andritz Fiber Drying AB
Artullsvägen 1 Gräsdalsgatan 7 Kvarnvägen
891 21 Örnsköldsvik 653 43 Karlstad 351 87 Växjö
Sweden Sweden Sweden
Phone: +46 660 29 53 00 Phone: +46 54 55 54 50 Phone : +46 470 874 00
Fax: +46 660 29 53 99 Fax: +46 54 55 54 59 Fax : +46 470 876 44
E-Mail: info.swe@andritz.com E-Mail: info.swe@andritz.com E-Mail: flakt.drying@andritz.com
Andritz AB Andritz AB
Ivarshyttevägen 4 Gävlegatan 22
776 33 Hedemora 100 31 Stockholm
Sweden Sweden
Phone: +46 225 635 50 Phone: +46 8 736 25 00
Fax: +46 225 635 51 Fax: +46 8 736 25 29
E-Mail: info.swe@andritz.com E-Mail: info.swe@andritz.com
Brazil
Americas
Andritz Ltda. Andritz Ltda. Sprout-Matador do Brasil Ltda.

Rua Tabapuã, 627 - Cj. 92 - Av. Presidente Castelo Branco, Rua Dona Eugenia, 811
Itaim Bibi 1577, Sala 203 CEP 90630-150, Porto Alegre/RS
04533-012 - São Paulo - SP Caixa Postal 32 – CEP 29.160-970 Brazil
Brazil – Carapina – Serra Phone: +55 51 3219 9281
Phone: +55 11 3168 6114 Espirito Santo Fax: +55 51 3217 3307
Fax: +55 11 3078 5098 Brazil E-Mail: esoffioni@hotmail.com
Phone: +55 27 9941 8107
Andritz Brasil Ltda. Fax: +55 27 3318 1761
Rua Presidente Faria, E-Mail: woodservice@attglobal.net
248 – 10th Floor
80020-290 - Curitiba, PR
Brazil
Phone: +55 41 304 7611
Fax: +55 41 224 0014
Chile
Sprout-Matador A/S Chile Ltda.
Seminaro 202
Puerto Montt
Chile
/ andritz 2002
Phone: +56 65 434 366

Fax: +56 65 434 367
E-Mail: smchile@sprout-matador.cl
128
Canada
Americas
Andritz Ltd./Ltée. Andritz Ltd./Ltée. Andritz Fiber Drying Ltd.
3339 rue Griffith Street Service Center 8300 St. Patrick
Ville St-Laurent, Montreal 45 Roy Blvd. La Salle
Quebec H4T 1W5 Brantford Quebec H8N 2H1
Canada Ontario N3R 7K1 Canada
Canada Phone: +1 514 366 5160
- Mechanical Pulping Systems Phone: +1 519 754 4590 Fax: +1 514 366 3608
Phone: +1 514 731 0404 Fax: +1 519 754 4594 E-Mail: jim.mclean@andritz.com
Fax: +1 514 731 8558 E-Mail: ross.scott@andritz.com
E-Mail: maria.westaway@
andritz.com Andritz Ltd./Ltée.
Service Center
- Wood Processing 3448-78 Avenue
Phone: +1 514 738 3707 Edmonton
Fax: +1 514 731 9422 Alberta T6B 2X9
E-Mail: bernard.oconnor@ Canada
andritz.com Phone: +1 780 465 3344
Fax: +1 780 440 4354
USA
Andritz Inc. - Fiber Preparation Systems Andritz-Ruthner, Inc.
10745 Westside Parkway Fax: +1 518 745 2858 1010 Commercial Blvd. South
Alpharetta, GA 30004 Arlington, TX 76001
USA - Pulp and Paper Mill Services USA
Phone: +1 770 640 2500 Fax: +1 518 745 7005 Phone: +1 817 465 5611
Fax: +1 770 640 9454 Fax: +1 817 468 3961
E-Mail: welcome.atlanta@ - Fiberline R&D Facility E-Mail: andritz@andritz-arl.com
andritz.com Fax: +1 518 745 2971
Andritz-Ruthner, Inc.
- Kraft Mill Systems Andritz Inc. 125 Technology Drive,
Fax: +1 770 640 2603 R&D Facility Southpoint Industrial Park
3200 Upper Valley Pike Canonsburg, PA 15317
- Pulp and Paper Mill Services Springfield, OH 45504 USA
Fax: +1 770 640 2455 USA
Phone: +1 937 390 3400 - Rolling Mills and
- Wood Processing Fax: +1 937 390 6827 Strip Processing Lines
Fax: +1 770 640 2595 Phone: +1 724 745 7599
Andritz Inc. Fax: +1 724 745 9570
- Feed Technology Service Center E-Mail: welcome@andritz-na.com
Fax: +1 770 667 5222 101 Bamberg Drive
Pell City, AL 35125 Andritz Inc.
Andritz Inc. USA Engineered Wear Products /
35 Sherman Street Phone: +1 205 338 3331 Pulp and Paper
Muncy, PA 17756 Fax: +1 205 338 3334 9560 S.W. Herman Road
USA Tualatin, OR 97062
Phone: +1 570 546 8211 Andritz Inc. USA
Fax: +1 570 546 1306 TS Division Phone: +1 503 692 0850
8259 Melrose Drive Fax: +1 503 692 1169
- Pulp and Paper Lenexa, KS 66214 E-Mail: info@durametal.com
E-Mail: pp&b@andritz.com USA
Phone: +1 913 541 1703 Voith Andritz Tissue LLC
- Engineered Wear Products / Fax: +1 913 541 1631 101 South Main Street, Suite 400
Pulp and Paper Janesville, WI 53545
Fax: +1 570 546 1312 Andritz Inc. USA
E-Mail: info@durametal.com Service Center Phone: +1 608 758 5920
1565 Callens Road Fax: +1 608 758 5935
- Feed Technology Ventura, CA 93003 E-Mail: brad.dolbey@
E-Mail: sm@andritz.com USA voithandritz.com
Phone: +1 805 642 7419
Andritz Inc. Fax: +1 805 642 7476
101 Ridge Street
Glens Falls, NY 12804
USA
Phone: +1 518 793 5111
Fax: +1 518 793 1917
/ andritz 2002
129
Asia
China
Andritz-Kenflo Foshan Pump Co., Ltd. - Pulp Mill Technologies Andritz Technologies Ltd.
14 He Bin Road Phone: +86 10 6500 6413 14 He Bin Road
Foshan, Guangdong 528000 Fax: +86 10 6500 6415 Foshan, Guangdong 528000
China China
Phone: +86 757 280 2050 - Paper Mill Technologies, Phone: +86 757 280 2046
Fax: +86 757 281 7010 Rolling Mills and Strip Fax: +86 757 280 2047
E-Mail: welcome@fsh.andritz.com Processing Lines, E-Mail: welcome@fsh.andritz.com
Hydraulic Machines
Andritz AG Phone: +86 10 8497 0637
Representative Office Beijing Fax: +86 10 8497 0638
2702-03 CITIC Building
19 Jian Guo Men Wai Daije
100004 Beijing
China
E-Mail: andritz@public.bta.net.cn
India
Andritz Technologies Pvt. Ltd. Andritz Oy Enmas Andritz Private Limited
Makam Plaza, 2nd Floor India Liaison Office lV Floor, Guna Building Annexe
No. 63/1, 3rd Main Road 7, M.G. Bhawan, Flat No. 202-206 443, Anna Salai, Teynampet,
18th Cross, Malleswaram Local Shopping Centre, Chennai 600 018
Bangalore - 560 055 Madangir Road India
India New Delhi 110 062 Phone: +91 44 2 433 8050/51
Phone: +91 80 346 5995 India Fax: +91 44 2 432 2412
Fax: +91 80 346 5997 Phone: +91 11 2608 3324 E-Mail: eal@vsnl.com
E-Mail: andritz@vsnl.com Fax: +91 11 2608 1227
Indonesia Japan Singapore

PT. Andritz Andritz K. K. Andritz Singapore Pte. Ltd.
Gedung Bank Panin Pusat, Toyo-cho, Shinei Bldg., 7F 171 Chin Swee Road
3rd Floor 4-chome 3-1 Toyo, Koto-ku, #05-04 San Centre
JI. Jend. Sudirman 1 Tokyo Singapore 169877
Senayan, Jakarta 10270 135-0016 Japan Phone: +65 6538 0093/94
Indonesia Phone: +81 3 5634 3450 Fax: +65 6538 0940
Phone: +62 21 725 0137 Fax: +81 3 5634 3460 E-Mail: who@wwpe.com.sg
Fax: +62 21 571 0896
Thailand
Andritz Oy Phone: +66 2632 6873
Pulp Mill Services Fax: +66 2632 6875
c/o Ahlstrom Alcore E-Mail: ja.chaweng@andritz.com
6th Floor, Yada Building
56 Silom Road, Bangrak
Bangkok 10500
Thailand
Australia
New Zealand South Africa

Africa
Andritz Pty. Ltd. Andritz Australia Pty. Ltd. Andritz (Pty) Ltd.
56-58 Gaine Road 1450 Alfriston Road Suite 105 A, York House,
Dandenong South, Victoria 3175 Alfriston Aubrey Drive
Australia Auckland 1750 Glenashley 4022
Phone: +61 38 795 9800 New Zealand Durban
Fax: +61 39 799 4899 Phone: +64 9 266 2641 South Africa
E-Mail: andritz@andritz.com.au Fax: +64 9 266 2645 Phone: +27 31 562 8909
Fax: +27 31 562 8936
/ andritz 2002
130
Product Range
Product Range
Pulp and Paper
Wood Processing
Wood processing plants Chip and bark processing plants Groundwood processing
and equipment and equipment plants and equipment
Turnkey woodyards JetScreenTM Automatic grinder
LogPorterTM portal cranes Chip screens charging systems
PowerFeedTM drum infeed HQ-SizerTM for oversize LogScanTM log sorting system
conveyors chips
De-icing conveyors Rechippers Automation systems for
Slasher decks Bark shredders woodyards
Debarking drums Bark presses DrumMaticTM for debarking
Drum - chipper process lines process optimization
HHQ-ChipperTM and other Conveying, stacking and LogScanTM for automatic
disc chippers reclaiming systems for log sorting
Breakage chippers chip and bark BarkScanTM for wood loss
Screw reclaimers like measurement
PowerScrewTM, CenterScrewTM, WoodScanTM for debarking
ParaScrewTM, and CantiScrewTM degree measurement
HelpTM presteaming bins and
dischargers
Kraft Mill Systems
Fiberlines and fiberline equipment Chemical recovery plants and Cooking liquor chemical
EPC fiberlines (cooking, washing, equipment preparation plants and equipment
screening and bleaching) EPC chemical recovery islands Recausticizing plants
Digesters Black liquor evaporators Lime reburning kilns
Washers Effluent evaporators White liquor oxidation systems
Knot separation and screens Condensate stripping systems
Oxygen delignification systems Heat recovery systems
Bleach plants Chemical recovery boilers
Bleached pulp screens NCG handling systems
Refiner systems Production systems for the Bleaching stages based on

Complete systems for mechanical panelboard industry peroxide, oxygen, ozone and
pulping: chip washing, feeding, Complete mechanical pulping dithionite
impregnation, pretreatment, systems incl. chip washing and Wash presses
refining, screening, cleaning, pressurized refining for fiber Medium and high-consistency
dewatering and heat recovery production for HDF and mixers
Refiners for high, medium, and MDF board Medium and high-consistency
low-consistency Atmospheric refiner systems tower feed and discharge
Control, simulation and training for the production of raw material systems
systems for all types of refiners for the particleboard industry Medium-consistency pumps
and refiner systems Laboratory refiner systems
Dewatering systems
Pulp washing and bleaching Twin-wire presses
systems Screw presses
Medium and high-consistency Disc filters
/ andritz 2002
bleach plants for mechanical

pulp and annual fibers
131
Product Range

Pulp and Paper Systems for dewatering and Dewatering machines for sheet Bale transport and finishing lines
drying market pulp and flash drying plants
Complete sheet drying plants Heavy duty presses, Pulp dryers
Flash drying plants shoe presses Dryers for market pulp
Screening systems Wet cross cutters and layboys Dryers for flash drying plants
Wet lap systems Cutters/Layboys for pulp
Fiber Preparation Systems

Stock preparation systems for Recycled fiber systems, deinking Sludge handling for pulp and
paper, board and tissue machines and industrial grades paper industry
Bale and UTM pulpers LC/HC pulpers, drum pulpers Gravity tables
Deflakers Fine and coarse screens Sludge screw presses
Refiners Flotation systems Continuous pressure filters
Cleaners Washing/Deashing systems
Deaeration systems Cleaners
Headbox screens Disc filters, thickeners
Broke handling systems Twin-wire and screw presses
Filler recovery systems Dispergers
Savealls and water Bleaching systems
management systems Water management systems
Tissue Machines (in cooperation with Voith Paper)
Greenfield tissue machines, Crescent formers, S-Wrap and Through-Air Dryers,

new components, machine C-Wrap twin-wire formers for TissueFlexTM shoe press
modernizations single-ply or multi-layer sheet
formation
Ventilation and Drying Equipment
High-efficiency Yankee Impingement dryers for paper Paper and board machine
dryer hoods (300°C - 700°C) and board machines ventilation systems
Compact hoods for larger tissue Web stabilizers and steam Dust extraction systems
and paper dryers blow boxes Hall ventilation systems
Pulp & Paper Mill Services

OPETM Services Rebuilds Field services
- Overall production efficiency - Reconditioning of machinery - 24-hour emergency support
programs for pulp and through Andritz facilities or - Troubleshooting, optimization
paper mills certified partner rebuild/service - Operator and maintenance
- Equipment service shops training
to mill maintenance - Inspections, mill and process
outsourcing Parts and consumables improvement studies
- OEM spare and wear parts - Shutdown planning,
Automation & controls - Inventory optimization coordination and
- Tools for measuring, diagnosing - Spare part hotels implementation
and optimizing processes
Engineered wear products Dynamic process simulation
Upgrades - DurametalTM refiner plates
- Modernization of existing - FiberSentryTM screen baskets
equipment for improved
/ andritz 2002
reliability and efficiency
132
Product Range
Equipment for the steel, stainless steel,

non-ferrous metals and aluminium industry
Rolling mills Hot-dip galvanizing systems Plants for producing high-purity
Turnkey cold rolling mills Carbon-steel coating lines metal oxide and mixed oxide
Two-high, four-high, combined Combined aluminium annealing Plants for ore treatment (TiO2, Ni)
mills and S-high mills and coating lines Plants for waste acid purification
6, 12, 20-high rolling mills Stainless steel bright annealing (WAPUR)
Skin-pass mills lines with vertical muffle furnace
Roll adjustment and strip Grinding, sandblasting, polishing Annealing furnaces
thickness regulation systems and customized surface treatment Vertical furnaces (including
Flatness measuring and systems muffle furnaces)
adjustment systems Horizontal furnaces
Finishing systems
Strip processing lines Slitting lines Turnkey systems for producing
Push pickling lines Cut-to-length lines Foils for screen masks
Continuous pickling lines for Packing lines for narrow and wide Thermostatic bimetals
carbon steel coils and for plates Razor blade strip
Annealing and pickling lines Large levelling machines and Special material for the
for hot-rolled stainless steel strip precision levelling machines electronics industry
for cold-rolled stainless steel strip Stainless steel strip
for hot and cold-rolled stainless Regeneration and oxide plants
steel strip Plants for regeneration of waste
- with electrolytic or acid acid and rinse water from pickling
pickling (horizontal or carbon steel (hydrochloric acid)
vertical design) based on spray roasting and
- with horizontal furnaces fluidized bed technologies
Degreasing plants Plants for regeneration of waste
Electrolytic galvanizing lines acid and rinse water from pickling
(Gravitel) stainless steel (Pyromars mixed
Electrolytic tinning lines acid process)

Water treatment Sludge drying
Sand filtration systems Drum drying plants
Fluidized bed drying plants
Waste water treatment Belt drying plants
Raked and perforated plate
screens Thermal sludge utilization
Static and rotary screens and EcoDry granulate burning plants
sieves
Industrial solid/liquid separation
Sludge thickening Hyperbaric pressure filters
Belt thickeners Vacuum filters
Drum thickeners Belt filter presses
Decanter centrifuges Decanter centrifuges
Screen centrifuges
Sludge dewatering
Belt filter presses
High-performance decanter
centrifuges
FlocSave flocculent
preparation system
/ andritz 2002
133
Raw material size reduction Coating of pellets
Feed Technology
Product Range
Hammermills Drum coaters

Disc mill refiners Vacuum coaters
Roller mills Micro fluid systems
Crumblers
Dust separation filters
Mixing of feed ingredients Filters for conveyor aspiration
Horizontal ribbon mixers Rectangular free standing filters
Horizontal paddle mixers Modularly built filters
Vertical mixers Cylindrical free standing filters
Intake hopper filters
Weighing and metering
Hopper scales Material separation and cleaning
Loss-in-weight weighing systems Roto-Shaker screeners
Micro ingredients weighers Rotary feed dressers
Belt weighers
Liquid dosing equipment Conveying equipment
Chain conveyors
Conditioning and expanding Bucket elevators
Single-shaft conditioners Screw conveyors
Twin-shaft conditioners Rotary valves
Thermal feed expanders
Process controls
Pelleting Pellet mill/Feed expander controls
Pellet mills, gear driven Extruder controls
Pellet mills, belt driven Dryer/Cooler controls
Hammermill controls
Extrusion Weight controls
Single-screw extruders
Wear and spare parts
Drying and cooling of pellets Pellet mill dies and rolls
Horizontal belt dryers Expander and extruder screws
Horizontal belt coolers Extruder dies and barrels
Counter-flow coolers Hammermill screens and
hammers
Water turbines Reactor pumps

Kaplan turbines Main-coolant pumps

Francis turbines Secondary-loop pumps
Pelton turbines Components for handling fuel
Storage pumps elements
Shut-off devices
Compact turbines Space technology
Turbine governors Components for launcher rockets
Large-scale pumps
Axial-flow pumps
Mixed-flow pumps
Volute casing pumps
Pumping stations
Centrifugal pumps
Stock pumps
Medium-consistency pumps
Fan pumps
Pumps for flue-gas
desulphurization systems
/ andritz 2002
134
Glossary of Technical Terms

Annealing Process in which metal is heated, retained at a suitable temperature, then cooled rapidly or
slowly to reduce internal stress. As a result, the metal becomes softer and more workable,
particularly in cold processes.
APMP/P-RC Alkaline Peroxide Mechanical Pulping/Preconditioning Refiner Chemical treatment: A

refiner process in which the bleaching chemicals are added right away during chip impre-
gnation. First the chips are pressed, then the pressure is relieved and the chemicals added
at the same time. This process does not require a secondary bleaching stage and is thus
much cheaper for standard brightness degrees than conventional CTMP processes.
Bright annealing Annealing process, particularly for stainless steel, carried out in an oxygen-free environment
in order to avoid oxidation.
Calendering Process in which untreated paper is passed between two rolls at very high pressure to give
the paper a glazed finish.
CTMP Chemo Thermo Mechanical Pulping: Process based on the TMP process, with additional
chemicals being used to soften the lignin and reduce the energy input required to produce
mechanical pulp.
Debarking drum Machine for removing the bark from logs.
Deinking A core process in waste paper treatment, used to remove printer's ink from the fibers.
Disperging Disperging is a process stage in treatment of recycled fibers. Several process stages are
needed to remove the impurities, e.g. glue, ink, from the fibers. It is impossible, however,
to eliminate all impurities. What the disperging process does is to reduce these particles to
such a small size that they are no longer detrimental.
Extruder A continuous process in which animal feed components are cooked under pressure in a
combination of frictional and steam heat in order to expand the resulting product and
convert it into feed granulate. This process is very common in production of pet food, fish
feed, and cereals.
Galvanizing Process in which a support metal, such as iron or steel, is coated with a thin layer of zinc
by electrolysis or hot dipping (in molten zinc) to provide protection against corrosion.
Hammermill Plant for pulverizing raw materials for animal feed; the raw materials are hammered against
the sides of a metal drum by steel hammers.
Kraft mill Facility in which pulp is produced using the sulphate chemical process.
MDF Medium Density Fiberboard (board made of mechanical pulp from the refiner process)
Mechanical pulp Pulp containing lignin, made by grinding wood mechanically or by refining wood chips,
/ andritz 2002
mainly used to make newspaper and other printing grades containing wood pulp.
135
Microfluid dosing System for treating feed pellets, in which the pellets are coated with micro-amounts of
system liquids, such as enzymes and vitamins.
OSB Oriented Strand Board
Pickling Process for chemical treatment of oxidized steel, applied to obtain a clean, metallic surface.
Here, the steel is dipped into a hot bath of diluted sulphuric or hydrochloric acid.
Pulp The raw material for making paper, produced either chemically or mechanically by removing
the cellulose fibers from the structure of the wood or from other materials, such as
used/recycled rags, bagasse, and straw.
Refiner Machine for breaking down wood chips into fibers between two rotating surfaces, used in
production of mechanical pulp.
Rolling mill Plant in which steel strip is formed between two rolls rotating at the same speed in opposite
directions.
RTS Retention Time, Temperature, Speed: Refiner process that produces a better quality of
mechanical pulp at lower energy consumption. Better fiber properties are obtained with a
precisely controlled retention time in the refiner, higher temperature, and higher pressure at
the chipper before the refiner, which is operated at high speeds of up to 2,300 rpm.
Stock pump Special centrifugal pump for water and fiber suspensions.
Thickener Device for removing water from a pulp suspension. The fibers are collected on the surface
of a perforated cylinder.
TMP Thermo Mechanical Pulping: Process in which chips are steamed under pressure to break
up the wood structure, then refined to produce fiber pulp.
Wet end Section at the beginning of a paper or pulp dewatering machine. At the wet end, the pulp
enters the machine and the bulk of the water is removed by dewatering, suction, and press
rolls in order to obtain a paper web that can be fed through a drying section.
Vacuum coater System used in the fish feed and pet food industry to soak the core of the feed particle with
liquid by means of vacuum infusion.
/ andritz 2002
136

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Highlights of the 2002 Business Year

Sales and Earnings

High Order Backlog

We engineer the future

Business Development and Financial Goals

The Group’s financial goals are:

Comprehensive cost management and future-oriented capacity optimization help secure

The Company Boards

Managing Board: Supervisory Board:

Wolfgang Leitner Kurt Stiassny Johann Tschrischnig

Markku Hänninen Hans Albrecht Andreas Martiner

Franz Hofmann (Deputy Chairman)

Friedrich Papst Michael Hildisch

■ 1900 - Andritz is transformed into a joint stock company.

■ 1950 - Creditanstalt-Bankverein, Vienna, buys the majority of Andritz shares.

Ladies and Gentlemen,

Our goal is to become the technologically preferred supplier to a wide spectrum of

In the coming years, we will continue to increase our investments in information

Andritz AG Managing Board

General Economic Conditions

Rolling Mills and Strip Processing Lines

Environment and Process Technologies

Pulp and Paper

Order Intake and Order Backlog

In total, Earnings before Interest, Tax, Depreciation and Amortization of Goodwill

Andritz Group Key Figures (IAS)

MEUR 2002 2001 % change

Sales 1,110.1 1,318.7 -15.8%

(including minorities) 27.6 37.5 -26.4%

Research and Development

In Environment and Process Technologies, the performance range of standard drying

Feed Technology’s research activities concentrated on the successful conclusion of the

Based on these macro-economic assessments, leading research institutes (RISI, Jaakko

Pulp and Paper Rolling Mills and Strip

*) Trade mark of Voith Paper, cooperation partner of Andritz

Paper Mill Technologies

Business Area Profile

Business Development in 2002

It is furthermore reflected in the overview of the Order Intake by business segments.

MEUR 2002 2001 2000 1999

Sales 672.2 883.0 718.6 328.5

UPM-Kymmene of Finland selected Andritz to supply a complete chemical recovery

Chilean forest products company Celulosa Arauco y Constitución S.A. entrusted

Major Orders for Paper Mill Technologies:

Pulp Mill Technologies

Wood Processing Division

Division Manager: Profile

Business Development in 2002

The Division’s groundwood processing expertise was impressively confirmed by an

Research and Development

A 3D chip measurement prototype was tested in cooperation with the Andritz

Pulp and Paper

Pulp Mill Technologies

Kraft Mill Systems Division

Business Development in 2002

Bleaching towers supplied

of Andritz’ EPC delivery of a 2,205

Lo-Solids® Cooking employed in an Andritz continuous cooking system makes it

- to lower investment costs per ton of production through process simplification,

Pulp Mill Services Division

Primary emphasis is on services such as engineered wear parts, replacement parts,

Business Development in 2002

Research and Development