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Dear Sir or Madam,

2023 was a year that challenged us in many ways, both predictable and unanticipated. Yet it also showcased once again ANDRITZ’s ability to deliver on its promises to customers, shareholders and society.

As the green transition continues to gain momentum, our progress in 2023 also underscored ANDRITZ’s credentials as a supplier of crucial technologies for a sustainable global future.

ANDRITZ’s continued success as a company as well as our ability to navigate increased uncertainty are attributable above all to the dedication of our employees around the world. I am grateful to all of them, and count myself privileged to be leading an exceptional company like ANDRITZ at a time like this. Our teams navigated successfully through 2023, with dedication and commitment to our core values and strategic ­initiatives.

This is reflected in another year of record financial ­results. We closed 2023 with a significant increase in revenue and earnings, and were able to maintain profitability at the level of the previous year. Revenue set another record, rising by 15% to 8.7 billion ­euros. Despite continued pressure from high material costs and persistently high inflation, ANDRITZ was again able to generate high profitability, with the EBITA margin remaining stable at 8.6%. Order intake for the full year declined but remained at a satisfactory level. In the fourth quarter, we achieved a substantial increase in order intake. Order backlog was 9.9 billion euros, almost reaching the high level of the previous year.

Some of the most significant highlights of 2023 clearly illustrate our commitment to our customers and our ability to deliver technological innovation at scale. The timely start-up of UPM’s Paso de los Toros pulp mill in Uruguay was undoubtedly a major success. This was a mega-project by any standards, with a total investment value of some 3.5 billion US dollars – the largest foreign direct investment ever in Uruguay. Despite the unprecedented challenges caused by the pandemic, ANDRITZ supplied a complete pulp mill with energy-efficient and environmentally leading equipment and processes, which was inaugurated in ­August 2023.

We were also proud to receive our first large green ­hydrogen order: ANDRITZ will construct one of ­Europe’s largest green hydrogen plants for the ­Salzgitter Group, as the German steel firm ­continues its drive to achieve virtually CO₂-free production. From 2026, this 100 MW facility, incorporating pressurized alkaline electrolyzer technology from HydrogenPro, will produce 9,000 tons of green ­hydrogen – a key ­energy input of the future – every year, ­re­placing coal on an industrial scale.

The launch of our pilot line for automated textile sorting was a milestone on the innovation side. Automated textile sorting is a prerequisite for efficient textile recycling, and represents a huge challenge for the textile industry. Our pioneering approach is a significant step towards textile circularity. We anticipate substantial demand in the EU and worldwide for textile recycling technologies in the years to come.

These and other success stories show us that we are moving in the right direction, based on three major initiatives: decarbonization, digitalization and customer service. These initiatives are reflected in almost every market, every product and every industry we are working on across ANDRITZ. They are the areas where we are investing most and can innovate best. They create a sure foundation for us to take ANDRITZ to the next level, and to meet the needs of our customers, shareholders and society.

All of this means that ANDRITZ enters the new year with confidence. The resilience of our business positions us well to manage the diverse challenges that we face, from compliance with emerging regulatory and trade regimes to meeting changes in ­customer demand. In times of increased instability, the work that our local teams across the world do to keep our sites operating smoothly is impressive, and I highly appreciate it. 

In a year marked by rapid technological advances, we have closely followed the emergence of generative AI, and have enabled our organization to use it in our daily work. We aim to harness the benefits of generative AI to develop enterprise applications in many areas – from engineering and project management to the commercial use of our digitalization solutions – without compromising on data security.

As we look forward, ANDRITZ stands on a strong foundation of innovation, sustainability and customer focus. The green transition has become a global imperative, one that will demand investment and innovation over the long term. As a key technology supplier to the green transition, ANDRITZ is well-placed to develop the innovations that are needed in many areas, motivated by our focus on delivering for our customers and making a positive contribution to the world. Whatever the future brings, we are confident in our ability to adapt and thrive in the ever-evolving global landscape.

Thank you for your continued support and trust in ­ANDRITZ.

Joachim Schönbeck 
President and CEO

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