Dear Business Friends,

For those involved in the hydropower business 2015 was a challenging year. Hesitant investments in the OECD region, especially in Europe and North America, were balanced by exciting projects in developing countries and emerging markets.

H. Heber and W. Semper

Despite this shift in focus, ANDRITZ HYDRO has prevailed in these changing market conditions, with large contracts won in Brazil, Pakistan, China, India, and Vietnam. This shift was also reflected in our rehabilitation and service businesses, which, along with developments in the small hydropower market, mostly occurred outside the OECD region. With numerous global offices, ANDRITZ HYDRO has been able to strengthen its position to address these market shifts and provide outstanding support to local customers.

A particular need for the development of hydropower solutions at middle- and lower-river sections arose, and ANDRITZ HYDRO’s low-pressure and Bulb turbines are particularly suited to meet these demands. Continuous technological development - largely due to the exceptional expertise and commitment of our motivated employees - lays the foundation for ANDRITZ HYDRO to continue providing customers with tailored solutions from the smallest to the largest plant. As a result, even if market conditions remain challenging in 2016, ANDRITZ HYDRO is optimistic about this year’s developments.

Today, ANDRITZ HYDRO is well positioned in the market and will strive for continued excellence. In light of the increasing need for renewable energy and the growing demand for the service and modernization of existing hydropower plants, ANDRITZ HYDRO is confident about the future.

Sincere thanks for your continued trust,

H. Heber       W. Semper

M. Komböck

I would also like to take this opportunity to inform you that I have retired this year at the end of May after 38 years of service, when my colleagues in executive management, Wolfgang Semper and Harald Heber, are taking over my responsibilities.

I am very happy and thankful that I’ve been able to help shape the successful development of this company. ANDRITZ HYDRO’s position as one of the global leaders in the hydropower market for electro-mechanical equipment and services would have been impossible without the trust of our customers and partners.

I wish to thank my colleagues and employees for their commitment and many years of great work.

And to my business partners, I would like to thank you for your outstanding cooperation and ask that you continue to place your trust in ANDRITZ HYDRO, its management and employees.

M. Komböck

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