ANDRITZ METALS Capital Market Day 2010, Austria

ANDRITZ METALSCapital Market Day 2010, Austria

Contents Business profileand historicdevelopment ofthe business area Growth strategy Market Stainless steel strip processing line for JSL Limited, India2ANDRITZ METALS – Franz Hofmann – Capital Market Day 2010, Austria

Business profileStainless steel: Cold rolling mills for heavy and light reduction and surface finishing. Annealing, pickling, and finishing lines. Acid recovery plants and NOX treatment. Reheating furnaces for slabs, bars, and plates.Carbon steel: Reversing cold rolling mills and skin pass mills. Annealing and pickling lines. Acid regeneration plants. Galvanizing lines (electrolytic, hot dip) and color coating lines. Leveler and cutting lines for thick gauges. Stamping machines. Reheating furnaces for ingots, slabs, and bars. Heat treatment facilities (wheels, tubes, plates, generator shafts).Non-ferrous metals: Rolling mills for copper, bronze, and titanium. Pickling lines. Melting furnaces for copper refining. Leveling and color coating lines. Oxide production (Ni, Co, Mg). Stamping machines (electronic parts).3ANDRITZ METALS – Franz Hofmann – Capital Market Day 2010, Austria

Long-term order intake developmentStrong negative impact from global economic crisisOrder intake 2000-H1 2010 (MEUR)636Order intake 2009 by region 200420052006200720082009H12010ANDRITZ METALS – Franz Hofmann – Capital Market Day 2010, Austria

Long-term sales and earnings developmentSales growth mainly achieved through organic expansionCAGR Sales 2000-2009: .52.01001.00.0020002001200220032004Sales (MEUR)52005200620072008EBITA margin (%)ANDRITZ METALS – Franz Hofmann – Capital Market Day 2010, Austria2009H1 2010

Development in face of the crisisOnly selective project activity in emerging markets2451721241181169977354322Q1 2008Q2 2008Q3 2008Q4 2008Q1 2009Q2 2009Q3 2009Order intake (MEUR)6ANDRITZ METALS – Franz Hofmann – Capital Market Day 2010, AustriaQ4 2009Q1 2010Q2 2010

Major strategic achievements during last three years ANDRITZ technology for inline rolling of hot rolled stainless steel strip confirmed as best solutionin the market. Development and market introduction of servo press for metal stamping. Expansion of roll grinder portfolio. First order for heavy plate levelling machine with cassette technology. Set up of experienced engineering team for large heat treatment furnaces. Successful erection and commissioning of largest heat treatment facility for high speed railwaywheels. Establishing Pyromars (mixed acid recovery) as the only accepted solution for stainless steelcompanies.7ANDRITZ METALS – Franz Hofmann – Capital Market Day 2010, Austria

Important referencesJindal Stainless Steel, India8Scope of supply:Annealing and picklingline with integratedreduction rolling mill forhot rolled stainless steelstrip.Scope of supply :Annealing and pickling linewith three integrated rollingmills and one skinpass millfor cold rolled stainless steelstrip.Strip dimension:850 mm-1,650 mmStrip dimension:850 mm-1,600 mmCapacity:850,000 t/aCapacity:450,000 t/aGrades:AISI series 200, 300, 400Grades:AISI series 200, 300, 400Start-up:2011Start-up:2011ANDRITZ METALS – Franz Hofmann – Capital Market Day 2010, Austria

Important referencesNTMK, Russia ThyssenKrupp, GermanyCustomer:NTMK, Russia.Customer:ThyssenKrupp, Germany.Capacity:144,000 t/aScope of supply:Continuous heat treatment line with automatedquench and temper system for railway wheels.Scope of supply :Hot levelling line for plates.Start-up:08/2010Capacity:100 wheels/hDimension: Width: 700-3,800 mm Thickness: 3-60 mmStart-ups:2008/20109ANDRITZ METALS – Franz Hofmann – Capital Market Day 2010, Austria

Major orders 2009/2010 Bahru Stainless Steel, Malaysia:Hot/cold rolled and cold rolled annealingand pickling lines for stainless steel strip. Benxi Iron & Steel, China:Electrolytic galvanizing line forcarbon steel strip. Lianzhong Stainless, China:Push pull pickling line for hot rolledstainless steel strip. Tongling Nonferrous Metals Group, China:20-high rolling mill for copper strip. Tianjin TISCO, China:Annealing and pickling line for coldrolled stainless steel strip. Fuxin, China:Annealing and pickling line for hotrolled stainless steel strip. Zhangjiagang Pohang Stainless Steel, China:Annealing and pickling line for coldrolled stainless steel strip.10 Bonatrans, Czech Republic:Heat treatment facility with quenching andtempering system for railway wheels. Aurubis, Germany:Melting furnace for precious metals. Usiminas Cubatao, Brazil:Continuous pickling line for hotrolled carbon steel strip.ANDRITZ METALS – Franz Hofmann – Capital Market Day 2010, Austria

Research & developmentMain focus on process improvement Zinc recovery from galvanized steel. CVD-process for coating steel stripwith Aluminium. Mechanical descaling and degreasingwith high pressurized water. In-line rolling process. Continuous heat treatment of iron/siliconstrip. Grinding machines for large rolls( 900 mm Ø). Elliptic furnaces for copper melting. Bright annealing lines for stainless steelstrip with very high through-put. Process automation (level 2 MMS).11 Zinc recovery from scrap of the automotive industryANDRITZ METALS – Franz Hofmann – Capital Market Day 2010, Austria

Contents Business profile andhistoric developmentof the business area Growth strategy Market Pickling line with acid regeneration for carbon steel, Usiminas, Brazil12ANDRITZ METALS – Franz Hofmann – Capital Market Day 2010, Austria

Growth strategyOrganic expansion and acquisitions Increase market share in carbon steel and non-ferrous production lines and defend position instainless steel. Focus on technological leadership, customer satisfaction, and cost competitiveness. Strengthen global sales and order execution team (design and automation). Speed up R&D projects and bring new promising products faster to market. Grow globally in service business via localization. Evaluate M&A opportunities to enlarge product range, e.g. heat treatment, surface treatmenttechnologies, slitting and cutting lines, measuring devices.13ANDRITZ METALS – Franz Hofmann – Capital Market Day 2010, Austria

Contents Business profile andhistoric developmentof the business area Growth strategy Market Car bottom forging furnace for Saarschmiede, Germany14ANDRITZ METALS – Franz Hofmann – Capital Market Day 2010, Austria

Expectations for next 12 months and main market driversAsia, Brazil, and Russia as main marketsExpectations for next twelve months Main markets in Asia, Brazil, and Russia. Low project activity in Europe and USA to continue. Complementary investments to maximize efficiency of existing plants. Revamping of outdated equipment.Main market drivers GDP growth in emerging markets (especially Brazil, Russia, China, India, and other Asian countries) willdrive investments in infrastructure, housing, energy production, basic supplies, and automotive industries. Increasing shift of metals manufacturing capacities to Asia. Replacement of outdated equipment to comply with growing environmental regulations, to increaseefficiency and to meet safety requirements. Revamping of older equipment for strip processing to meet increasing quality requirements for differentindustries (e.g. high-strength steel for the automotive industry). Restructuring of steel industry, especially in Europe and USA. Technology change for car engines (electrical motors) will push production capacities for electrical steeland batteries.15ANDRITZ METALS – Franz Hofmann – Capital Market Day 2010, Austria

DisclaimerCertain statements contained in this presentation constitute ‛forward-looking statements.’ These statements, which contain thewords ‛believe’, ‛intend’, ‛expect’ and words of similar meaning, reflect management’s beliefs and expectations and are subject torisks and uncertainties that may cause actual results to differ materially.As a result, readers are cautioned not to place undue reliance on such forward-looking statements. The Company disclaims anyobligation to publicly announce the result of any revisions to the forward-looking statements made herein, except where it wouldbe required to do so under applicable law.According to IFRS.16ANDRITZ METALS – Franz Hofmann – Capital Market Day 2010, Austria

7 ANDRITZ METALS – Franz Hofmann – Capital Market Day 2010, Austria ANDRITZ technology for inline rolling of hot rolled stainless steel stripconfirmed as best solution in the market. Development and market introduction of servo press for metal stamping. Expansion of roll grinder portfolio. First order for heavy plate levelling machine with cassette technology.