Annual Report

VA Technologie AG
Annual Report

Key figures VA TECH Group
2000 1999 % Change
2000/1999
Order intake EUR m 3,894 3,570 + 9
Order backlog as at 31.12. EUR m 3,709 3,515 + 6
Sales
Earnings before interest, taxes
EUR m 3,985 3,447 + 16
and goodwill amortisation (EBITA) EUR m 125 140 -11
Earnings before interest and taxes (EBIT) EUR m 93 130 -28
Financial result EUR m -51 -98 +48
Earnings before taxes (EBT) EUR m 42 32 +31
Result from discontinuing operations EUR m - -122 -
Extraordinary result EUR m -6 - -
Profit/loss for the period EUR m 30 -95 -
Cash earnings
Investments in tangible
EUR m 46 95 -52
and intangible assets EUR m 126 112 +13
Investments in shareholdings EUR m 153 98 +56
Total investments EUR m 279 210 +33
Product and process innovation EUR m 98 81 +21
Product and process innovation / sales % 2.5 2.4 -
Employees (average for the year) 22,150 20,609 +7
ROS % 3.1 4.1 -
ROE % 6.4 4.2 -
ROCE % 6,0 3.2 -
WACC % 8.4 8.4 -
Average capital employed EUR m 1.926 1.650 +17
Market capitalisation (year end) EUR m 480 983 -51
Earnings per share EUR 2.1 1.8 -
Dividend per share EUR 1.21) 1.2 -
1) Proposal to the AGM

Divisions of the VA TECH Group
Metallurgy
VOEST-ALPINE Industrieanlagenbau is a leading international metallurgical plant
builder with a multinational company structure and a systems supplier for both
individual and integrated plants.
Mineral and Reduction Technology; Steelmaking, Continuous Casting and
Environmental Technology; Rolling Mill, Strip Processing, Pipe and Tube
Production Technology; Complete Plants/Metallurgical Plant Integration;
Auxiliary and Infrastructural Plants; Automation; Metallurgical Services
Hydro Power Generation
VA TECH HYDRO is a global supplier of electromechanical equipment and services
(“Water to Wire”) for hydro power plants. VA TECH HYDRO is one of the
world’s largest suppliers in the hydro power generation sector and holds a leading
position in the power plant refurbishment growth market.
Large Hydro (turnkey power plant construction); Compact Hydro (hydro power
projects with unit sizes of up to 15 MW); Service & Rehab (integrated solutions to
enhance the profitability and long-term value of existing hydro power plants);
Combined Cycle Power Plants (gas-fuelled)
Power Transmission and Distribution
VA TECH Transmission and Distribution is a leading international supplier of
electric power transmission and distribution systems and offers integrated
system solutions and cutting edge technology, individually tailored to the
customers’ needs.
Turnkey substations up to 550 kV; circuit breakers and disconnecting switches;
product and network services, automation, protection and excitation, transformers
up to 1,300 MVA, 765 kV, shunt reactors, special-purpose transformers, distribution
transformers, earth-fault neutralizers, transformer components
Water Systems
VA TECH WABAG is an international systems supplier with a complete range
of water and wastewater treatment technologies and a global network of
business units.
Drinking Water; Industrial Water; Wastewater Treatment; Sea and Brackish Water
Desalination; Sludge Treatment and Drying Evaporation Plants; Services
Industrial Services
The VA TECH Industrial Services Division is an international systems supplier in
high-grade engineering and technical services, with networked mechanical, electrical
and electronic competences.
Mechanical Plant Engineering; Transport and Assembly Systems; Services; Electrical
Plant Engineering; Drive Technology; Information Systems

Key figures
EUR m 2000 1999 Change 99/00
• Order intake 1,080 982 + 10%
• Order backlog 1,196 1,153 + 4%
• Sales 1,055 858 + 23%
• EBITA -26 50 -
• EBIT -36 50 -
• ROS -2.5% 5.9% -
• Employees 4,125 3,122 + 32%
EUR m 2000 1999 Change 99/00
• Order intake 637 542 + 18%
• Order backlog 978 827 + 18%
• Sales 738 436 + 69%
• EBITA 38 30 + 27%
• EBIT 33 30 + 10%
• ROS 5.1% 6.9% -
• Employees 3,011 1,603 + 88%
EUR m 2000 1999 Change 99/00
• Order intake 661 724 - 9%
• Order backlog 589 663 - 11%
• Sales 752 729 + 3%
• EBITA 51 44 + 16%
• EBIT 38 37 + 3%
• ROS 6.8% 6.0% -
• Employees 4,899 5,330 - 8%
EUR m 2000 1999 Change 99/00
• Order intake 325 249 + 31%
• Order backlog 368 330 + 12%
• Sales 317 253 + 25%
• EBITA 12 -12 -
• EBIT 12 -14 -
• ROS 3.8% -4.9% -
• Employees 805 684 + 18%
EUR m 2000 1999 Change 99/00
• Order intake 1,339 1,239 + 8%
• Order backlog 691 674 + 3%
• Sales 1,307 1,311 0%
• EBITA 59 56 + 5%
• EBIT 57 54 + 6%
• ROS 4.5% 4.3% -
• Employees 9,141 9,716 - 6%

Annual Report 2000
VA TECH is a focused Technology and Service Company, which creates
value for its customers throughout the plant life cycle. The Group’s
Metallurgy, Hydro Power Generation, Power Transmission and
Distribution, Water Systems and Industrial Services divisions have top
international rankings.
1

2
Highlights
Growth in order intake (9%) and sales (16%).
Positive business development and earnings growth in all
divisions except Metallurgy.
Group operating result of EUR 93 m.
Profit for the period of EUR 30 m, following a loss of EUR 95 m during the previous year.
Strengthening and focusing of the business portfolio:
• Global alliance and joint venture with Schneider Electric. VA TECH is
Top 3 in the high-voltage power transmission and distribution sector.
• Sale of VA TECH VOEST MCE (March 2001).
Founder membership of the ec4ec engineering marketplace (e-commerce for
engineered components).
Outlook 2001
points to an increase in business volume and operating result growth.

Contents
Supervisory and Managing Boards 4
Introduction of the Supervisory Board Chairman 5
Introduction of the Managing Board 6
The VA TECH Group 8
Group Development and Structure 8
The DRIVE Programme 10
VA TECH in the Capital Markets 12
Status Report for the 2000 Financial Year 14
The Economic Climate 14
Business Development 2000 15
Outlook 2001 22
Metallurgy 24
Hydro Power Generation 28
Power Transmission and Distribution 32
Water Systems 36
Industrial Services 40
Innovation, Research and Development 44
E-Business 48
Human Resources 50
Report of the Supervisory Board 52
Annual Accounts 2000 of the VA TECH Group 53
Notes to the Consolidated Annual Accounts 2000 58
VA TECH “Facts and Figures” 88
3

4
Supervisory Board
Chairman:
Prof. Herbert KREJCI *
Secretary General, Association
of Austrian Industrialists, ret.
(until April 12, 2000, then honorary chairman)
Prof. Rudolf STREICHER **
Chairman of the
Österreichische Industrieholding AG (ÖIAG)
(from April 12, 2000)
Deputy Chairman:
Karl HOLLWEGER *
Chairman of the
Österreichische Industrieholding AG (ÖIAG) ret.
(until April 12, 2000, then member)
Johannes DITZ **
Deputy Chairman of the
Österreichische Industrieholding AG (ÖIAG)
(from April 12, 2000)
Members:
Winfried BRAUMANN *
Managing Director, Finanzierungsgarantie GmbH
Ost-West-Fonds
Alfred KOCH **
Chairman, Steyr-Daimler-Puch Fahrzeugtechnik AG
(from April 12, 2000)
Wolfgang LEITNER
Attorney at law, Association of
Austrian Shareholders
(from April 12, 2000)
Helmut LIST
Managing Director, AVL List Ges. f.
Verbrennungskraftmaschinen
und Meßtechnik mbH
Christian NOWOTNY
Corporate Law Department,
Vienna University of Economics
Othmar PÜHRINGER
Chairman, VA Technologie AG ret.
(until April 12, 2000)
* Member of the accounts committee until April 12, 2000
** Member of the accounts committee from May 4, 2000
Gerhard RANDA
Chairman Bank Austria AG,
Member of the Managing Board,
Bayerische Hypo-Vereinsbank AG
Eduard SAXINGER
Attorney at law
Walter SCHOPF
Regional Secretary,
Metals-Mining-Energy Trade Union/Upper Austria
(until April 12, 2000)
Johann SEREINIG
Member of the Managing Board
Österreichische Elektrizitätswirtschafts-AG
(Verbundgesellschaft)
(until April 12, 2000)
Peter STRAHAMMER *, **
Chairman, VOEST-ALPINE STAHL AG
Alfred WIDMER
Managing Director, Julius Blum GmbH
(from April 12, 2000)
Ernst ARTNER
Chairman,
VOEST-ALPINE Industrieanlagenbau GmbH & Co
Salaried Staff Council
Anton BENEDER
Chairman,
VA TECH ELIN EBG GmbH/Vienna Workers’ Council
Anita FURLAN
Chairman, applied international informatics AG
Salaried Staff Council
Siegmund HARTMAIER *, **
Chairman, VA TECH VOEST MCE GmbH & Co
Workers’ Council
Alois LOSSINGLEITNER
Chairman,
VA TECH ELIN EBG GmbH/Linz Workers’ Council
Wilhelm STURM *, **
Chairman, VA TECH HYDRO GmbH & Co
Salaried Staff Council
Managing Board
Erich BECKER
Chairman
Horst WIESINGER
Vice-Chairman
Georg ANTESBERGER
Member
Richard GUSERL
Member
Roland SCHARB
Member

Introduction of the Supervisory Board Chairman
Today, economic and social conditions are changing in a far more dynamic manner than even many trend researchers
had assumed. Following the high hopes placed in the emerging markets of the nineties, after a period of euphoria, we
are now experiencing a more realistic evaluation of the “new economy”. The question therefore arises as to what offers
sufficient permanence to be relied upon? Quite simply, the more complex and volatile the situation, the clearer and
more predictable the actions of corporate managers must be.
In line with this maxim, during last year, the new VA TECH management developed a clear programme involving the
transformation of what had previously been a multifaceted conglomerate into a focused Technology and Services
Company, which provides value throughout the entire plant life cycle. This vision is not only attractive to owners and
customers, but also a spur for employees to examine their own activities in the light of value and benefit creation. The
Group-wide DRIVE improvement programme for the realisation of this vision is comprehensive and incorporates
focusing the portfolio, structural streamlining, increased efficiency, the expansion of innovation and growth business
such as services and automation, and a management incentive system, which is based on economic value added.
On this long-term route to Group renewal, during 2000 VA TECH experienced both successes and setbacks. The
DRIVE programme is well integrated in all of the Group’s divisions and has shown initial successes. VA TECH has
strenghtened its position as a market leader in the high-voltage power transmission and distribution sector by means of
a global alliance with Schneider Electric. The sale of VA TECH VOEST MCE in March 2001 represented the passing of a
major milestone in the focusing process. Nonetheless, VA TECH was unable to escape the effects of the difficult market
and stock exchange environment. Despite professional preparation, the IT subsidiary applied international informatics
could not be floated on the stock market. Furthermore, provisions had to be made for higher project completion costs
and intensified restructuring in the Metallurgy Division, which also had a negative influence on Group results.
Consequently, after a difficult year in 2000, result improvements
and value creation will take absolute priority throughout the entire
VA TECH Group.
Following the expiry of his contract at the end of June 2001, Group
Vice-Chairman, Horst Wiesinger, is to retire. During his 35-year
career, Horst Wiesinger has brought both VA TECH and, above all,
the Metallurgy Division great prestige and success through his high
level of professional competence, long-term acquaintances with top
steel industry executives, inventiveness and implementation skills.
Horst Wiesinger’s know-how, connections and reputation will continue
to be available to the Group in a consultative function. Group
Chairman, Erich Becker, will assume the chairmanship of the
VOEST-ALPINE Industrieanlagenbau Supervisory Board with effect
from July 1, 2001.
I would like to take this opportunity to express my gratitude and
recognition to the management and employees of the VA TECH
Group for their achievements and commitment during the 2000
financial year. In addition, I would like to thank the shareholders,
customers and business partners for their loyalty to VA TECH. I am
convinced that the Group has enormous potential for an attractive
future and have every confidence that the management and staff
possess the competence and motivation to utilise these opportunities.
Rudolf Streicher
Chairman of the VA Technologie AG
Supervisory Board
5

6
Introduction of the Managing Board
Ladies and gentlemen,
The past year was characterised by powerful expansion in the global economy. The USA continued to demonstrate
growth and the Western European economy developed favourably, aided by the low euro exchange rate against the US
dollar. The economies of the young industrial nations in Asia and Latin America also recovered further. However, in the
third quarter of 2000, there were increasing signs of a slowing in the rapid pace of economic growth and therefore, the
world economy must be regarded with caution, particularly in view of the cooling down predicted in the USA.
The capital goods sector also benefited from the generally positive economic climate. However, the situation varied
greatly, depending on the respective customer group. The energy industry demonstrated growth in the power
generation and distribution sectors, continuing strong demand for gas-fuelled power plants and a strengthening trend
towards renewable forms of energy. Despite record steel production, the steel industry retained its reticence with
regard to new investment.
As in the previous year, the price situation remained tense. Consolidation among customers and suppliers led to
restructuring and therefore reduced profit expectations, especially in the second six months of the year. This resulted in
partially massive corrections in the evaluation and share price of engineering companies.
The difficult situation in the business and capital markets demanded a still more pronounced differentiation from the
competition and opened up opportunities for a strategic orientation towards growth areas in automation and services,
the concentration of the portfolio, and the systematic pursuit of sustained value added in every field.
During 2000, VA TECH responded to these market conditions with a thorough strategic realignment. The Group is on its
way to becoming a focused Technology and Service Company with top global rankings in its core business areas. The
comprehensive DRIVE improvement programme, which extends to the entire Group, was drawn up at the beginning of
2000 and has already started to have a positive effect across the company. This Group transformation process was
successfully initiated during 2000:
• The business portfolio was further strengthened and focused. The worldwide alliance with Schneider Electric puts
VA TECH into the top 3 ranking in the global high-voltage power transmission and distribution sector.
• The sale of VA TECH VOEST MCE in March 2001 represents an important step towards the strategic redesign of the
Industrial Services Division.
• Continuous restructuring in all Group divisions resulted in a cut in the work force of around 1,000 employees.
• The disposal of 9% of the Group’s VOEST-ALPINE STAHL shares had a positive effect on both the balance sheet
and results.
• The foundation of the ec4ec (e-commerce for engineered components) engineering marketplace together with other
leading European companies opens up potential for VA TECH in the sourcing sector and with regard to improved
performance.
Despite tough market conditions, VA TECH order intake in 2000 was raised by 9% to EUR 3,894 m, while sales were
increased by 16% to EUR 3,985 m. The Hydro Power Generation, Power Transmission and Distribution, Water Systems
and Industrial Services Divisions all demonstrated positive business volume developments and operating result growth.
By contrast, Metallurgy had to accept an unexpected deterioration in results from current projects during the fourth
quarter of 2000. In combination with balance sheet provisions for the bringing forward of planned restructuring, this led
to a loss in the Metallurgy Division and a reduction in the Group operating result over the preceding year. The result for
2000 was clearly positive at EUR 30 m. The proposed dividend for the 2000 financial year will remain unchanged over
that for 1999 at EUR 1.2 per share.

The Group result targets for 2000 were not achieved. For this reason, an improvement in results throughout the entire
VA TECH Group is the top priority for the current year. Order intake, sales and operating result (EBIT) growth are all
planned for 2001.
An EVA ® -based (Economic Value Added) top management incentive system, which was introduced on January 1, 2001,
will result in a systematic orientation towards sustained value added. This should be reflected by the capital markets’
evaluation of VA TECH and a positive share price trend.
We would like to thank our shareholders, customers and business partners for their trust and co-operation. Our
gratitude also goes to the entire Group work force for its performance and high levels of motivation and
commitment. We have set ourselves ambitious market and result targets and will do everything in our power to achieve
them. A successful year in 2001 is of decisive importance to the future of the VA TECH Group. Together we will
succeed in returning the VA TECH to its status as an attractive and profitable company of which we can be
justifiably proud.
Horst Wiesinger, Roland Scharb, Erich Becker, Richard Guserl, Georg Antesberger (f.l.t.r.)
Erich BECKER Horst WIESINGER Georg ANTESBERGER Richard GUSERL Roland SCHARB
Chairman of the Board Vice-Chairman of the Board Member of the Board Member of the Board Member of the Board
7

8
Group Development and Structure
“Focused Technology and Services”.
VA Technologie AG was founded at the end of 1993 and
subjected to majority privatisation on the Vienna Stock
Exchange during the first half of 1994. Following strong
growth in both business volume and results during its
initial years, the Group was submitted to major restructuring
as a result of radical changes in its business
environment such as globalisation, market liberalisation
and customer and competitor concentration. As a result
of company acquisitions worth more than EUR 400m
since 1998, VA TECH has joined the world elite in its
core business areas. The integration of over 10,000 new
employees from a range of countries also created a
notable thrust towards internationalisation. In 2000, 52%
of the VA TECH work force was based outside Austria.
As a response to the crisis in the emerging markets and
its global consequences for the capital goods branch,
restructuring and disposals during the past three years
have led to the reduction of the VA TECH staff by more
than 11,000 employees.
In addition, the business and capital markets demand a
still stronger focus on core business with growth
potential, transparent, streamlined structures and a
Divisions Metallurgy
Hydro Power
Generation
systematic orientation towards customer benefits and
sustained value added.
If upon going public, VA TECH was still a diversified
engineering conglomerate, today it is well on the way to
becoming a focused Technology and Service Company,
which provides value for its customers throughout entire
plant life cycles.
VA TECH is now a globally active group with Metallurgy,
Hydro Power Generation, Power Transmission and
Distribution, Water Systems and Industrial Services
Divisions.
Our common strengths lie in technology, engineering,
component manufacture and project management for
selected customer branches. Automation and services
for the complete plant life cycle, as well as the potential
derived from e-business, represent our key competences
for the future and offer attractive possibilities for
growth and earnings. The basis for exploiting these
opportunities is formed by strong companies with
international business links, backed by the financial
strength of a corporate group.
Our core competences for the future: automation, services and e-business
Sales
Power Transmission
and Distribution
Water Systems Industrial Services
Top 2 global Top 2 global Top 3 HV global 1) International Player Multi-local Player
EUR m 2) 1,055 738 1,100 317 823
Employees 4,125 3,011 7,000 805 4,822
1) Incl. joint venture with Schneider Electric, figures rounded
2) Figures 2000, Industrial Services excluding MCE
Automation. Services. E-Business.

Divisions
Metallurgy
Division VOEST-ALPINE VA TECH HYDRO VA TECH Transmission VA TECH WABAG VA TECH Industrial Services
Companies Industrieanlagenbau and Distribution
VA Technologie AG
VA TECH VOEST MCE
VA TECH ELIN EBG
applied international
informatics
Managing Board Erich Becker Horst Wiesinger Georg Antesberger Richard Guserl Roland Scharb
Members Chairman Vice-Chairman Member Chief Financial Officer Member
of the Board of the Board of the Board Member of the Board of the Board
Divisions Metallurgy Hydro Power Generation, Industrial Services
Power Transmission and
Distribution,
Water Systems
Regions North and South America, Asia/Pacific, Western Europe,
CIS, Africa Near and Middle East Central/Eastern Europe
Business Strategy and Corporate Innovation Management; Global Management Financial Management; Network Management,
Functions Development; Information Technology Controlling; Accounting and Group Sourcing
Mergers and Acquisitions; Taxes; Risk Management
Human Resources; and Insurance;
Communications and Legal Matters
Investor Relations;
Group/System Auditing
Community Service
Hydro Power
Generation
Successful partnership with “Doctors
without borders” now in its fifth year.
VA TECH attaches special importance to humanitarian
issues and efforts aimed at reducing the suffering in
many parts of the world.
An open ended, long-term partnership with “Doctors
without borders” has existed since 1996.
In recognition of its donor activities, VA TECH was
awarded the social sponsoring prize of the Caritas and
the magazine “Gewinn” in the form of the “ELISA 2000”
in silver.
VA TECH is also involved where aid must be provided
quickly, as in the case of the earthquakes in Turkey and
India.
VA TECH Group
Power Transmission
and Distribution
Water Systems Industrial Services
Cultural partnership with the Bruckner
Orchestra of Linz.
As the main sponsor of the PRESTO Association, VA
TECH supports the expansion of the artistic possibilities
open to the Bruckner Orchestra of Linz.
The highlight of the year was a concert with the Bruckner
Orchestra and the soloist Maxim Vengerov conducted
by Prof. Martin Sieghart, which was held in April 2000 at
the Vienna Konzerthaus and transmitted live via the
Internet.
VA TECH is also helping to finance national and
international cultural projects such as the building of a
new museum of the arts in Linz (Lentos) and the
provision of a protective roof over historical cliff houses
in Ephesos/Turkey.
9

10
The DRIVE programme
With “DRIVE”, VA TECH has created an extensive
programme, which incorporates a reorientation of the
Group, operative improvements and increased efficiency.
The main focal points and targets of the programme are
summarised in seven points:
1.Focus the portfolio.
We are concentrating on our core business, in
order to strengthen our top market positions.
The implementation of the focusing of the portfolio on
the core areas of metallurgy, hydro power generation,
power transmission and distribution, and industrial
services has taken place through acquisitions
(Kvaerner Metals Equipment, Ferranti-Packard/
Peebles/Reyrolle, WABAG, Escher Wyss) and joint
ventures (global alliance with Schneider Electric in the
high-voltage sector). Non-core areas are to be
provided with new business perspectives and improved
opportunities for development through partnerships,
joint ventures or divestments.
2.Streamline the organisation.
An efficient organisation with a simple structure is
to be established from organic diversity.
During the past year, the Group was reorganised into
five divisions. Regional structures were also redefined
and simplified. A regional manager was nominated in
each of the seven VA TECH regions and a regional
council established. A marked reduction in the
number of global business offices through mergers or
closures is currently in progress.
3.Raise operative efficiency.
We are improving our competitiveness and raising
our earnings potential in a sustained manner.
An improvement in the operating result is the top
priority in all Group divisions. Promising cost reduction
potential is primarily available in the areas of
sourcing, process upgrading, cost optimised product
design and the reduction of other expense items. Ongoing
restructuring has led to a cut of around 1,000 in
the work force. Earnings are also to be raised by a
sales offensive, and in particular through an intensification
of key account management using modern
customer relations systems.
4.Reduce capital employed.
We are optimising our asset structure and are
thereby increasing the attractiveness of VA TECH
to the capital markets.
A reduction in non-operating and net current assets is
already in full swing in all divisions. Furthermore,
VA TECH reduced its capital employed and raised its
income through the sale of 9% of VA STAHL AG
shares.
5.Expand the service business.
Commitment in this growth market improves
customer ties and earnings.
It is our aim to develop VA TECH into a focused
Technology and Service Company, which offers the
customer value creation throughout the entire plant
life cycle. For us, this means the provision of specific,
worldwide products and services throughout our
globally active divisions and multi-local services for
our domestic European market in the Industrial
Services division.
The goal is to greatly expand the share of services in
our international business during the coming years.
The maintenance of existing plants, efficiency upgrades
and the customer-oriented assumption of
services open up high value generation and profit
potential.

6.Accelerate innovation and new business
initiatives.
We are strengthening our position as an
innovative company.
During 2000, VA TECH stepped up its activities in the
e-business field and started a series of initiatives in
the e-sales (distribution), e-collaboration (project
management) and e-procurement (sourcing) areas.
Moreover, in teamwork with major industrial and
technological partners (Babcock Borsig, mg technologies,
SAP Markets Europe, Deutsche Bank),
ec4ec GmbH (e-commerce for engineered components)
was founded, the first electronic marketplace
for the mechanical engineering and plant building
sectors.
The largest Austrian business plan competition, “i2b –
ideas to business”, was started with national and
international partners, in order to promote and realise
business ideas from innovative branches.
7.Enhance value-based control and
incentive systems.
Individual performance and contributions to the
attainment of our objectives are to receive greater
recognition.
The variable VA TECH remuneration system has been
subjected to a basic overhaul. Since January 1, 2001,
some 200 top Group managers have sustained value
generation on the basis of EVA ® (Economic Value
Added) as their main target. The achievement of
targets is assessed on a yearly basis and, as opposed
to conventional systems, the requirement for sustainability
over a period of several years is accounted for
through the introduction of a bonus bank.
11

12
VA TECH in the Capital Markets
For investors in the capital goods sector in general and
VA TECH shareholders in particular, 2000 was not a
successful year. The international stock exchanges such
as New York (minus 6%) and Frankfurt (minus 7%)
showed a negative annual performance. The Vienna ATX
index lagged even further behind with minus 10%. The
2000 stock exchange year was overshadowed by price
fluctuations among “new economy” shares. However,
traditional capital goods industry shares were also
hardly able to win the favour of investors. The annual
performance of the Morgan Stanley Capital Index for
mechanical engineering and plant building companies,
for example, was minus 13%. During 2000, the price of
the VA TECH share fell from EUR 66 to EUR 32
(minus 51%).
Apart from the unfavourable general conditions, the
negative price trend of the VA TECH share can be traced
to the Group’s business development. The stock
exchange float of the IT subsidiary, ai informatics, had to
be cancelled due to the unfavourable stock exchange
environment. The IPO (Initial Public Offering) was
planned for October 2000. However, while domestic
demand in the book-building phase progressed satisfactorily,
international institutional investors in particular
remained reticent. Moreover, a profit warning was given
in December 2000, which VA TECH was forced to issue
due to the unexpected deterioration in Metallurgy
Division results, and this also pushed the share price
down.
The dividend for 2000 proposed by the Managing Board
to the Annual General Meeting amounted to EUR 1.2 per
share. This corresponds with a dividend yield of 3.8% in
relation to the year-end share price in 2000. With a
market capitalisation of EUR 480 m, the price of the
VA TECH share at the end of 2000 was 17% below the
book value of EUR 576 m.
There is increasing recognition by the capital markets of
the commitment to sustainable ecological development
and promotion of renewable energy sources. As a result
of its orientation towards environmentally-sound technical
solutions, VA TECH is now listed in a number of
sustainability indexes and ecology funds.
Investor relations activities for
institutional investors.
Apart from numerous investor and analyst discussions,
investor relations activities in 2000 centred on the annual
VA TECH Open. This already traditional event took place
on October 10-11, 2000, in Wiesbaden, Germany, and
focused on the general theme of “Automation and
Services”. Thirty analysts and investors from respected
national and international investment houses used the
opportunity to gather information about related developments
in all divisions. Automation has great future
potential in every area and the participants showed a
special interest in solutions which function on the basis
of expert systems. The on-line consulting and support of
steel industry customers, or reliable forecasting systems
in the energy technology sector, indicate the know-how
basis on which the services of the future will be
developed.
Direct and Internet services for private
investors.
During 2000, retail investors were provided with information
via “VA TECH Special” events in Vienna and Linz,
which were attended by around 2,000 people. The
Internet homepage is available as a constantly growing
source of information and communications under the
address www.vatech.at. Apart from the latest news and
subscription services, the web site also offers live
transmissions. The homepage was redesigned in March
2001 and now possesses improved functionality. All in
all, VA TECH serves after more than 4,000 retail
investors in the VA TECH Investors Club.

Price development since May 25, 1994
International comparison, index in %
■ VA TECH
■ ATX
■ MSCI
Machinery & Engineering
■ MSCI Europe
As at
Feb. 15, 2001
Ownership structure
2000
Free float
ÖIAG
VOEST-ALPINE STAHL AG
300
275
250
225
200
175
150
125
100
75
50
25
24%
19.05%
Markets
Vienna (Vienna Stock Exchange, VAT)
London (SEAQ London)
New York (ADR-Bank of New York, VATXY)
Berlin (free trading)
Munich (free trading)
Stuttgart (free trading)
Hamburg (free trading)
1994 1995 1996 1997 1998 1999 2000 2001
56.95%
Dates for 2001
• Results
Annual Report 2000 March 22, 2001
Quarter 1, 2001 May 17, 2001
Quarters 1-2. 2001 August 30, 2001
Quarters 1-3, 2001 November 22, 2001
• Annual General Meeting April 25, 2001
• Dividend ex-date May 2, 2001
• Dividend payment date May 7, 2001
• VA TECH Open 2001 November 2001
VA TECH securities numbers:
ISIN: AT 0000 937453
ADR-ISIN: US 91819 P 1049
(ISIN: International Securities Identification Number)
Reuters Code: VATE.VI
Bloomberg: VATC AV
AP-Dow Jones: R.VATECH
Should you be interested in receiving investor information, invitations within the scope of the
VA TECH Investors Club, or have any other questions, the VA TECH Investor Relations team
is pleased to answer all inquiries.
Tel.: (+43/732) 6986-9222; Internet: www.vatech.at; E-Mail: contact@vatech.at
13

14
Status Report for the 2000 Financial Year
The Economic Climate
The global economy gives indications of
a slowing in dynamic growth in the third
quarter of 2000.
During the first half of 2000, the global economy again
showed strong growth. Up to the summer, even the
sharp rise in oil prices over the beginning of 1999 (from
USD 10 to USD 25 per barrel), had no visible dampening
effect. Not until the second half of the year was there a
slight downturn in economic activity, initially in the USA.
World trade development in 2000 was most satisfactory.
There was an increase in volume of around 13% as
compared with 1999.
The upswing in the Western European economy of 1999
was maintained in 2000. Impulses continued to derive
from foreign demand, which was supported by the
weakness of the euro against the US dollar. An
additional factor in Europe’s positive, export-oriented
economic performance was the prolongation of powerful
economic growth in the USA and the recovery in the
emerging economies of Asia.
Economic growth in the Group’s main European markets
during 2000 was comparatively uniform, with Germany
and the UK both showing 3.0%, France 3.3%, Italy 2.8%
and Spain 4.1%. Austrian growth was just over the EU
average of 3.4% at 3.6%.
As a whole, 2000 was also a satisfactory year for the
states of Central and Eastern Europe. Overall economic
production expanded considerably and gross domestic
product rose in all the transitional economies for the first
time since the beginning of the reform process.
The leaders with regard to growth were Poland, Hungary
and Slovenia with 5% or slightly more. The growth rate
in the Czech Republic also showed a pleasing improvement
(2.5% as opposed to negative growth of -0.2% in
1999). The Baltic states made up considerable ground
with average growth of approximately 2.9%. However,
the high oil price of the second half of 2000 caused a
rise in current account deficits and hence an increase in
the danger of financial crises.
There was above-average growth (6.5%) in Russian
gross domestic product, which was primarily aided by
the rise in global market prices for crude oil and natural
gas. Russia profited from the drastic devaluation of its
currency and increased efforts within its domestic
industry.
Following ten years of uninterrupted economic growth,
the US economy prepared for a soft landing. Mainly as a
result of excellent figures during the first half of the year,
growth for 2000 remained satisfactory at 5%. However,
towards the end of year, this figure was halved to around
2.4%. The share price corrections on the stock exchanges
during the second six months of 2000, particularly
those to “new economy” shares, had a major effect
on private consumption and business investment decisions.
In the course of the year, the global upturn spread
steadily to Latin America. Argentina was the only
country not to show a clear recovery, above all due to
the high real external value of its currency, which had a
negative effect on the competitiveness of its products.
Brazil and Chile showed solid growth with 3.8% and
5.8% respectively, while Argentina had weak growth of
0.7%.
The economic revival in the emerging Asian economies
continued during the first half of 2000. The main impetus
for growth derived from exports. However, the upturn
was also increasingly supported by domestic demand.
The extent of the process of recovery from the economic
crisis of 1997/98 differed from country to country. South
Korea developed to the largest extent, but Malaysia and
Thailand were able to keep pace. In Indonesia, the
structural problems, which were responsible for the
crisis, have not been entirely remedied.
All in all, growth in Asia amounted to some 7%, whereby
Korea with 8.3%, Malaysia with 7.8%, India with 7% and
China with 7.5% were above this figure and Indonesia
with 3.5%, Thailand with 4.5% and the Philippines with
3.8% were below.

Capital goods sector shows increased
project activity, continuing price
pressure and a cautious evaluation by the
capital market.
Growth in the global economy also created fresh
impulses in the capital goods sector, although this
expansion largely derived from the “new economy” and
private consumption. Increased project activity was the
result, however, this differed among the individual
customer groups. Despite record steel production,
investment in the steel industry was extremely cautious,
particularly with regard to new plants.
In the power technology sector, the boom in gas-fuelled
power stations continued. Investment in power transmission
and distribution varied according to the extent
of privatisation and liberalisation among the power
suppliers and network operators in individual countries.
The continuance of concentration tendencies among
both customers and the competition meant that there
was no easing of the pressure on prices, even though
the situation was more stable than after the Asian crisis.
The extremely reticent assessment of the engineering
and capital goods sector by the capital markets following
the Asian crisis is reflected by a reduction of around
40% in branch stock values. The increased number of
profit warnings over the preceding year resulted in a
marked correction in share prices. Acquisitions, mergers
and subsequent restructuring have yet to demonstrate a
value generating effect.
The consequence is an extremely selective assessment
and evaluation of individual companies within the broad
spectrum of capital goods suppliers. This provides
opportunities for differentiation through increased focusing,
the targeting of growth areas such as automation
and services, rigorous cost management and systematic
value creation.
Sources: WIFO Austria; OECD Outlook; Deutsches
Institut für Wirtschaftsforschung; investment bank
engineering and capital goods sector analyses.
Business Development 2000
Scope of consolidation
The figures include the Sulzer Hydro acquisition made at
the beginning of 2000, which has the brand name
Escher Wyss, and the acquisition of ARITEX in the
Industrial Services Division.
The Kvaerner Metals Equipment (KME) acquisition was
already included in the consolidated financial statement
as at December 31, 1999 with regard to balance sheet
values, order intake and backlog. The profit and loss
statement and other key figures were consolidated with
effect from January 1, 2000.
Order intake
Order intake growth of 9%.
Order intake was raised by 9% to EUR 3,894 m.
Industrial Services provided the largest share of this
increase with 34%, followed by Metallurgy with 28%. As
in past years, Western Europe continued to dominate in
regional terms with 60%, followed by North and South
America with 19% and Asia/Pacific with 8%.
Order intake
1998 – 2000
EUR m
Order intake
by division 2000
Metallurgy
Hydro Power Generation
Power Transmission and Distribution
Water Systems
Industrial Services
Other VA TECH
and consolidation (-3%)
3,036
1998 1999 2000
34%
8%
3,570
17%
3,894
28%
16%
15

16
Status Report 2000
Order intake
by region 2000
Western Europe
Central and Eastern Europe, CIS
Near and
Middle East,
Africa
Asia/Pacific
North and
South America
(country of final destination)
Order backlog up by 6%.
At the end of 2000, order backlog, which consists of the
pool of orders awaiting completion, was 6% up on last
year at EUR 3,709 m. The Metallurgy Division had a 32%
share of order backlog, Hydro Power Generation 26%,
Power Generation and Transmission 16%, Water Systems
10% and Industrial Services 19%. Other VA TECH
and consolidation amounted to minus 3%.
The most important regions were Western Europe with
53%, North and South America with 20%, Asia/Pacific
with 11% and Near and Middle East, Africa with 10%.
Projects which had not been finally invoiced demonstrated
a wide range of sizes. 23% of order volume
related to orders worth more than EUR 100 m each,
11% to orders valued between EUR 50 and 100 m, 25%
to the EUR 10-50 m category, and 41% to orders with
individual volumes of less than EUR 10 m. In total, the
VA TECH Group dealt with some 20,000 orders.
Earnings situation
Sales growth of 16%.
Sales, which, in accordance with the International
Accounting Standards, represent the total of all partially
or fully invoiced orders increased by 16% over the
preceding year to EUR 3,985 m. Of this figure, EUR 117 m
derived from interest, which resulted from the balance
between advance payments received and full and partial
payments made at an interest rate of 4% (following EUR
116 m in the previous year at the same rate).
8%
6%
19%
7%
60%
Among the Group Divisions, Industrial Services led the
way with 33%, followed by Metallurgy with 26%.
Western Europe with 56% and North and South America
with 19% dominated the regional sales mix.
Sales
1998 – 2000
EUR m
Sales
by division 2000
Metallurgy
Hydro Power Generation
Power Transmission and Distribution
Water Systems
Industrial Services
Other VA TECH
and consolidation (-5%)
Sales
by region 2000
Western Europe
Central and Eastern Europe, CIS
Near and
Middle East,
Africa
Asia/Pacific
North and
South America
(country of final destination)
3,216
3,447
3,985
1998 1999 2000
33%
9%
7%
8%
19%
9%
19%
26%
19%
56%

Profit and Loss Statement
(abridged version)
EUR m 2000 1999 Change
Sales 3,985 3,447 +16%
Sales plus changes in inventory 3,884 3,402 +14%
Other operating income
Expenses for materials
254 190 +34%
and services received -2,151 -1,790 +20%
Personnel expenses
Depreciation
-1.109 -981 +13%
(excluding goodwill amortisation) -78 -70 +11%
Other operating expenses -675 -612 +10%
EBITA 125 140 -11%
Goodwill amortisation -32 -10 +220%
EBIT 93 130 -28%
Financial result -51 -98 +48%
EBT 42 32 +31%
Taxes -9 -8 +13%
Result from discontinuing operations - -122 -
Extraordinary result -6 - -
Minority interests 4 3 +33%
Profit/loss for the period 30 -95 -
Along with sales, sales plus changes in inventory also
increased, rising by 14% to EUR 3,884 m.
As usual in the engineering business, expenditure for
materials and services received dominates the expense
structure, depending on projects in progress. The ratio
of material expenses to sales plus changes in inventory
rose from 53% to 55% in 2000. Personnel expenses
amounted to 29% of sales plus changes in inventory, the
same percentage as in the previous year.
Depreciation totalled EUR 110 m, an increase of 38%.
This was primarily due to the rise in goodwill amortisation
from EUR 10 m to EUR 32 m.
Operating result down on the
preceding year.
The result before interest, taxes and goodwill amortisation
(EBITA) was 11% down on the figure for the
previous year at EUR 125 m. EBIT fell by 28% to EUR
93 m.
All divisions demonstrated EBIT growth except Metallurgy,
which required additional provisions for a deterioration
in results from current projects and for future
restructuring expenditure.
The contributions to results of the divisions amounted to
minus EUR 36 m from Metallurgy, EUR 33 m from Hydro
Power Generation, EUR 38 m from Power Transmission
and Distribution, EUR 12 m from Water Systems and
EUR 57 m from Industrial Services. Other VA TECH and
consolidation contributed minus EUR 11 m. The latter
area contains expenses for Group management and the
VA TECH service companies, movements in Group
provisions and intra-group result consolidation.
The financial result consists of the result from interest
and the result from investments. The interest result
contains interest from the assessment of Group liquidity
and the taking of loans. The interest from advance and
partial payments reclassified under sales was deducted
from the financial result. In addition, the financial result
also includes changes in the value of financial assets
derived from mark-to-market evaluation.
The financial result in 2000 stood at minus EUR 51 m,
following minus EUR 98 m in the previous year. This
improvement resulted primarily from the disposal of 9%
of the Group’s shares in VOEST-ALPINE STAHL (revenues
EUR 93 m; earnings of EUR 56 m before taxes,
net income after taxes of EUR 46 m). Other factors
were higher interest due to reduced liquidity (minus EUR
18 m), higher reclassified interest on advance and partial
payments (minus EUR 1 m), the disposal and valuation
of securities on the balance sheet date (plus EUR 16 m)
and lower earnings on investments (minus EUR 6 m).
Therefore, EBT (earnings before taxes) in 2000 stood at
EUR 42 m, which was 31% higher than in the previous
year.
EBITA and EBIT
1998 – 2000
EUR m
EBITA
EBIT
86
83
140
130
125
1998 1999 2000
93
17

18
Status Report 2000
Improved result for the year.
The reported tax expenses of EUR 9 m gave a tax quota
of 22%. EUR 4 m were reported as minority interests. A
voluntary contribution to the Austrian reconciliation fund
resulted in an extraordinary result of minus EUR 6 m
(after taxes). The result for the year 2000 amounted to
EUR 30 m (following minus EUR 95 m in 1999). Taking
the book profit from the sale of VA STAHL shares into
account, the profit per share was EUR 2.1.
Result ratios 2000/1999
The following table shows the most important result
ratios, as well as selected value-oriented key figures for
the Group.
Result ratios 2000 1999
ROS1) VA TECH Group % 3.1 4.1
Metallurgy % -2.5 5.9
Hydro Power Generation % 5.1 6.9
Power Transmission and Distribution % 6.8 6.0
Water Systems % 3.8 -4.9
Industrial Services % 4.5 4.3
ROE 2) VA TECH Group % 6.4 4.2
ROCE3) VA TECH Group % 6.0 3.2
Metallurgy % -5.4 3.2
Hydro Power Generation % 8.0 N/A
Power Transmission and Distribution % 7.0 N/A
Water Systems % 7.4 -21.7
Industrial Services % 11.0 10.1
WACC (Weighted Average Cost of Capital) % 8.4 8.4
Average capital employed (EUR m)
VA TECH Group 1,926 1,650
Metallurgy 790 680
Hydro Power Generation 265 N/A
Power Transmission and Distribution 428 N/A
Water Systems 85 90
Industrial Services 427 437
Other VA TECH and consolidation -69 N/A
1) ROS = EBITA/sales
2) ROE = profit/loss for the year plus the result from discontinuing operations/average
equity
3) ROCE = NOPLAT (net operating profit less adjusted taxes)/ Average
capital employed
Asset and financial situation
Balance sheet (abridged version)
EUR m 2000 1999 Change
Fixed assets 1,214 1,066 +14%
thereof tangible assets 474 425 +12%
Current assets 2,726 3,046 -11%
Assets 3,940 4,112 -4%
Equity 576 575 -
Minority interests 20 27 -26%
Provisions for social capital 340 313 +9%
Liabilities 3,004 3,197 -6%
Equity and liabilities 3,940 4,112 -4%
The VA TECH balance sheet structure is traditionally
characterised by a low tangible asset intensity (12% of
the balance sheet total). As a result of acquisitions,
goodwill as part of the fixed assets has grown to EUR
469 m (EUR 350 m in 1999).
Current assets were reduced primarily by lower liquidity.
Equity remained virtually unchanged over the previous
year at EUR 576 m. The equity ratio was 15% and the
asset cover – as the ratio of equity plus social capital to
fixed assets – amounted to 75%.
Lower liabilities to banks led to a reduction in total
liabilities by 6%.
Net current assets, the balance of the operative assets
and debt capital items, stood at EUR 75 m as at
December 31, 2000, an increase to 1.9% of sales plus
changes in inventory (0.7% in 1999).
Gross Group liquidity – the total of short-term liquid
funds – fell from EUR 1,294 m to EUR 788 m. Net
liquidity, after the deduction of interest-bearing debt
capital of EUR 235 m, amounted to EUR 553 m as at the
balance sheet date (EUR 880 m in 1999). Gearing
stood at minus 96%.
Liquidity1) EUR m 2000 1999
Gross liquidity 788 1,294
- Interest bearing debt capital 235 414
= Net liquidity 553 880
Gearing % -96% -153%
1) maturity < 1 year

Cash flow and investments
Cash flow
EUR m 2000 1999
Cash earnings 46 95
+ Change in working capital -199 -143
= Cash flow from operating activities -153 -48
+ Cash flow from investment activities -109 -241
= Free cash flow -262 -289
+ Cash flow from financing activities -84 384
= Change in liquid funds -346 95
At EUR 46 m, cash earnings in 2000 were lower than in
the preceding year. This was the result of the decline in
the Group’s operating result. The operating cash-out of
EUR 153 m derived mainly from reduced cash earnings
and a fall in the advance payments on projects received
on the balance sheet date of December 31, 2000.
The cash-in from asset disposals was of roughly the
same size as the payments for asset investments. This
means that the negative balance (EUR 109 m) was
largely caused by the acquisition of the Escher Wyss
Group.
When netted with the income from the sale of securities,
dividend payments and the reduction of liabilities to
banks resulted in a financial requirement of EUR 84 m.
Consequently, the net reduction in liquid assets totalled
EUR 346 m.
Cash earnings, investments and
acquisitions 1998 – 2000
EUR m 2000 1999 1998
Cash earnings 46 95 99
Investments in shareholdings1) 153 98 224
Invest. in tan./intan. assets2) 126 112 105
1) Purchase price and new foundations
2) Tangible and intangible assets
Risk management
Comprehensive risk management activities have long
been implemented within the VA TECH Group. This is
indicated in a number of ways, including the fact that
due to the successful management of the Y2K risks, no
damage was incurred in the Group’s EDP systems at the
turn of 2000.
Professional risk management for the entire Group is
anchored in the VA TECH as an integrated structural and
procedural system. This focuses on a holistic approach
to risks, e.g. technology, country, currency, financing
and payment risks, as well as the risks derived from
project management. The respective risk items are
determined using various Group directives and then
dealt with at either division level or within the operative
business areas. Extensive risk management activities
address the individual and respective business area
requirements. The preventive spread of business risks
will be of increasing importance in years to come.
Acquisition key figures
EUR m SEHV5) Escher Wyss1) KME1) WABAG1) FPR2) EZ Praha2) Sales 360 191 283 1153) 357 107
Employees 2,435 1,545 1,326 4153) 3,300 1,427
Purchase price4) - 130 56 24 196 16
Goodwill6) -37 94 197 32 121 12
Initial consolidation 1.1.2001 1.1.2000 31.12.1999 1.4.1999 1.1.1999 1.1.1998
1) Key figures for 1999
2) Key figures for the acquisition year 1998
3) Key figures for the consolidation period (1.4.1999 - 31.12.1999)
4) Including acquired cash and equivalents
5) Schneider Electric High Voltage and high voltage transformers, figures forecast for 2000
6) Updated figures
19

20
Status Report 2000
Research and development
During the past year, the VA TECH Group invested a
total of EUR 98 m in product and process innovation.
This corresponds with an increase of 21% over 1999.
The ratio of innovation expenses to sales amounted to
2.5%, after 2.4% in the previous year.
The distribution of innovation expenses varies between
the individual divisions. Those characterised by competitive
strengths derived from product and process
developments generally spend more on innovation than
the divisions in which services predominate.
41% of the total expenditure on product and process
innovation related to Metallurgy, 15% to Hydro Power
Generation, 25% to Power Transmission and Distribution,
4% to Water Systems and 15% to Industrial
Services.
In 2000, innovation intensity (product and process
innovation/sales) amounted to 3.8% in the Metallurgy
Division, 2.0% in Hydro Power Generation, 3.2% in
Power Transmission and Distribution, 1.2% in Water
Systems and 1.2% in Industrial Services.
Product and process innovation
1998 – 2000
EUR m
67
1998 1999 2000
Product and process innovation
by division 2000
Metallurgy
Hydro Power Generation
Power Transmission and Distribution
Water Systems
Industrial Services
4%
25%
15%
81
15%
98
41%
Human resources
During 2000, the Group employed an average work force
of 22,150. The rise in the number of employees (+7%)
can be traced to the consolidation of company acquisitions.
If these acquisitions are deducted, then employee
numbers fell by 5% due to capacity adjustments.
Employees by division
2000 share % 1999
Metallurgy 4,125 19% 3,122
Hydro Power Generation 3,011 13% 1,603
Power Transmission and Distribution 4,899 22% 5,330
Water Systems 805 4% 684
Industrial Services 9,141 41% 9,716
Other 169 1% 154
Total 22,150 100% 20,609
As in past years, over 60% of the work force is
comprised of trained engineers, around half of whom are
university, polytechnic or secondary education
graduates.
Employees
1998 – 2000
(average for the year)
University and
polytechnic graduates
Secondary school
graduates
Employees with specific
technical training
Other employees
17,684
20,609
22,150
1998 1999 2000
Employee qualification structure
25%
32%
17%
26%

Life cycle value
As a reliable partner, we support our customers in both a holistic and
proactive manner. Sustained value generation is our common goal.
VA TECH provides a range of products and services covering the complete industrial
plant life cycle, from technology development, engineering, operation and maintenance,
to cutting edge automation and services.
21

22
Status Report 2000
Outlook for 2001
Growth in the global economy will
continue, but at a slower rate.
Growth is again forecast for the global economy during
this year, although at around 3%, it will be smaller than
in the last 12 months. Among the negative influences
named are the price for crude oil, the share price trends,
a delay in the process of economic reform in Asia and
the current account deficits in the emerging markets. A
weakening of the strong economic growth rates in the
USA is awaited. It is predicted that the European
economy will prove more resilient to these downward
tendencies and growth should continue in the states of
Central and Eastern Europe as a result of applications to
join the EU. The up and coming industrial nations of Asia
and Latin America are also expected to experience a
prolongation of favourable economic development.
Metallurgical plant building offers
opportunities in the automation and
services sectors.
It is anticipated that during 2001 global steel consumption
will remain at the high level of the previous year. A
short-term increase in steel prices is unlikely and
therefore a significant revival in new plant business
cannot be expected. There is stable demand for plant
modernisation. In addition, automation and services
projects (e.g. consulting, maintenance, spare part management)
will continue to benefit from favourable market
conditions.
Power generation characterised by
growth in gas-fuelled power plants,
“renewables” and services.
Progressive liberalisation and deregulation, the high oil
price and the steady increase in power demand due to
population trends have created a sustained boom in the
area of gas-fuelled combined cycle power plants, which
are highly efficient, environment friendly and can be built
quickly.
Renewable energy sources are also an important growth
driver within this scenario. Hydro power has established
a solid position with around 20% of global energy
generation, although the international market for largescale
hydro projects will again demonstrate a low
volume during the current year. Growth potential is
available in plant refurbishing, services and “compact
hydro” plants.
Power transmission and distribution
shows a trend towards plant updates and
automation solutions.
This year, the market opportunities in the power
transmission and distribution sector in Europe and North
America again lie in the modernisation area. Networks
will also be further expanded in the emerging markets.
Services and automation will gain in importance.
Water systems enjoy new opportunities
due to privatisation.
The global water systems market continues to expand
as a result of the rise in population numbers and living
standards. The privatisation of the public sector water
supply will also open up new business opportunities,
particularly with regard to operator and operating
management models.
Industrial services move towards
complete packages.
The strengthening of the trend towards outsourcing and
the growing demand for integrated services throughout
the entire plant life cycle have continued into 2001.
Capital goods manufacturers are increasingly turning to
industrial services, in order to counterbalance the
cyclicity and risks inherent in plant building and to
exploit the growth and margin potential offered by
service business. The number of facility management
and infrastructure assignments is rising.

VA TECH to increase its business volume
and show result growth.
An increase in both order intake and sales, as well as an
improvement in the operating result (EBIT), are all
expected for 2001.
The primary Group objective during the coming years is
a sustained rise in operative earnings. The DRIVE
improvement programme has made a good start in all
areas of the Group and has already produced initial
successes.
The restructuring and capacity adjustment measures
begun during 1999 in the Metallurgy Division were
intensified in 2000 with the aim of creating a positive
operating result in 2001. The Hydro Power Generation
Division will focus on the expansion of its services
business and the refurbishing and updating of existing
power plants. In particular, these emphases relate to the
growing opportunities for hydro power as a renewable
energy source in relation to the attainment of the Kyoto
targets. Following the commencement of a joint venture
with Schneider Electric High Voltage, Power Transmission
and Distribution has been newly structured.
Therefore, the integration of business processes and a
further concentration on automation and services will be
on the agenda for this division during 2001. Following
the successful turnaround in 2000, Water Systems will
also continue on a value generating course using
measures aimed at increased efficiency.
Following the sale of a majority holding in VA TECH
VOEST MCE, the Industrial Services Division will step up
its efforts towards the provision of full service packages
in the areas of electrical plant engineering and infrastructure/facility
management.
The IT company, ai informatics, will remain within the
Group for the time being.
Special events after the balance sheet
date of December 31, 2000
At the beginning of March 2001, the Andlinger Group
Anlagenbau Holding GmbH took over 80.1% of the
VA TECH VOEST MCE Group. VA Technologie AG will
retain the remaining 19.9% of the shares. The Transport
and Assembly systems (TMS) area is not part of this
transaction. Provided that approval is given by the
merger control authorities, the takeover will take effect
retroactively as at January 1, 2001.
In the 2000 financial year, MCE VOEST achieved sales of
EUR 484 m with an average of 4,319 employees.
The remaining minority holding of VA TECH in MCE
VOEST underlines the continuity of business relations
with the VA TECH Group companies.
The contract covering a comprehensive, global alliance
between VA TECH and Schneider Electric in the power
transmission and distribution area came into effect on
January 22, 2001.
VAI took over the majority of Fuchs Systemtechnik at the
beginning of 2001.
23

24
Metallurgy

Market situation
Growing trend towards modernisation and
automation projects.
World crude steel production in 2000 reached a record
level of around 830 million metric tons. As compared
with 1999, consumption rose by about 6% to some 750
million metric tons. Despite high demand, this far greater
increase in production could not be absorbed, with the
result that growing stocks led to a marked fall in steel
prices during the second half of the year, particularly in
North America. As a consequence, the steel recovery,
which started in 1999, slowed considerably.
Metallurgical plant building has a market volume of
approximately EUR 8.5 bn and forecast average growth
rates of 1-2% p.a. Our markets comprise the iron and
steel making industry, as well as the aluminium flatproduct
rolling mill and strip processing sectors. VAI
numbers among the world’s top three suppliers of
metallurgical plants, which in combination possess a
market share of around 50%.
The pressure on prices in the plant building sector has
risen sharply since the Asian crisis and continued
unabated in 2000. Investment focused on continuous
casters, rolling mills and steel processing. In the hotmetal
sector, individual blast furnaces were updated, but
the demand for coal- and gas-based reduction processes
was low and showed no sign of reviving. The
trend towards modernisation and automation business
strengthened.
Market trends
Share1) of order intake
Plants Services
• Western Europe 48% � �
• Central/Eastern Europe, CIS 8% � �
• Near/Middle East, Africa 7% � �
• North/South America 27% �/� �
• Asia/Pacific 10% � �
1) Share of Metallurgy Division order intake in 2000
The Western European market is characterised by solid
demand for modernisation and rationalisation measures,
but new capacity is only being installed in exceptional
cases. In the transition economies of Central and
Eastern Europe, plant investment also depends on the
involvement of Western partners and the appropriate
financing possibilities. The initiation of EU expansion to
the east will create impetus for change in the applicant
countries. Sizeable production increases in Russia have
made finance available for modernisation projects. Iran
plans new steelmaking capacity, but this is tied to the
availability of financing lines.
In North America, the strong dollar led to high import
rates and price pressure on both steel products and
investment schemes. Steel demand in South America
improved further in the course of the economic recovery.
Southeast Asia is in the middle of a slow recovery, but
with a low level of plant order allocations. In China,
restructuring among steel producers and improvements
in product quality were the main priorities.
According to estimates from the IISI (International Iron
and Steel Institute), global steel consumption in 2001 will
remain at the high level of the previous year. Despite this
fact, steel prices demonstrate a downward trend and
therefore an extremely competitive situation can also be
anticipated for the current year.
Under these circumstances, modernisation, automation
and services offer the best opportunities.
25

26
Global steel consumption
In m tons 1998 1999 2000 Fore- Fore- Average
cast cast growth p.a.
2001 2005 2000 - 2005
EU (15) 138 138 144 145 150 0.8
Rest of Europe 35 32 34 35 38 3.0
CIS 29 31 33 33 37 2.7
Africa 15 15 15 16 17 2.1
Middle East 14 15 16 16 18 2.1
China 114 130 137 147 165 3.8
Japan 70 69 74 73 70 -1.0
Korea 25 34 39 40 142 3.2
Rest of Asia 77 77 83 85 142 3.2
Oceania 7 7 6 6 7 2.1
NAFTA 141 138 144 144 151 0.9
South America 27 25 27 29 35 5.0
World total 692 711 752 769 830 2.0
Source: IISI (International Iron and Steel Institute);
Medium Term Outlook for Steel Demand
Business development
VA TECH in top 2 world market position.
As a result of the acquisition of Kvaerner Metals
Equipment in 1999, the VA TECH Metallurgy Division has
become the world’s second largest supplier to the global
market and the only multinational metallurgical plant
builder with subsidiaries in countries including the USA,
the UK, Germany, France, Spain, Italy, Brazil, South
Africa and India. The target is value creation for iron and
steel industry customers throughout the entire plant life
cycle, an objective in which the concentrated expansion
of automation and services business plays a key role.
Metallurgy key figures
EUR m 2000 1999 Change 99/00
• Order intake 1,080 9821) + 10%
• Order backlog 1,196 1,1531) + 4%
• Sales 1,055 858 + 23%
• EBITA -26 50 -
• EBIT -36 50 -
• ROS -2.5% 5.9% -
• ROCE -5.4% 3.2% -
• Employees 4,125 3,122 + 32%
1) Including KME
Metallurgy
Order intake and sales growth, sharp
decline in results.
Despite extremely difficult competitive conditions, order
intake was raised by 10%. While the situation in the
steelworks, continuous casting and rolling mill, as well as
automation technology sectors, was quite satisfactory,
there were only very limited order allocations in the
reduction technology area. Order intake developed
positively in the key regions of Western Europe, North
and South America and the Near/Middle East. Sales rose
by 23% to over a billion euros.
At minus EUR 36 m, the EBIT for 2000 was considerably
down on the EUR 50 m of the preceding year. EBITA
(EBIT before goodwill amortisation) stood at minus EUR
26 m (after EUR 50 m in 1999). This downturn in results
was due to the budgetary integration of Kvaerner Metals
Equipment, which was acquired in 1999, as well as
higher completion costs for current projects, which had
to be covered by balance sheet provisions. In addition, a
revaluation of the future project allocation potential and
the pre-project situation in December 2000 led to the
decision that apart from the measures already taken in
1999, provisions had to be made for further, intensified
restructuring during 2000, which had been originally
planned for 2001.
In the course of the restructuring measures introduced in
1999 for an adjustment to changed market conditions
and the extremely competitive price situation, primary
costs were cut by 15% as compared with the 1999
figure.
As a result of the initiatives for greater efficiency already
instituted and a further improvement in the costs
structure, a positive operating result is anticipated for
2001.
Integration of Kvaerner Metals Equipment, acquired in
1999, continued to progress satisfactorily.

Highlights 2000:
• Order for the completion of a turn-key cold-rolling mill
for the Belgian company DUFERCO LA LOUVIERE. It
is planned to produce around 1.4 m metric tons of flat
products and 450,000 tons of coated strip in the new
plant by the end of 2002.
• Extension of global leadership in the stainless steel
production plant sector through orders from
OUTOKUMPU/Finland, ALZ/Belgium and ACESITA/
Brazil. In addition, an order was obtained for the
modernisation of a stainless steel plant at TAIYUAN/
PR China.
• Modernisation and automation of the wide-strip mill
at ALFASID/Algeria using the latest control and
simulation techniques.
• Modernisation of aluminium rolling mills for, among
others, ALCAN/USA, ALUNORF/Germany and ALU-
MINIUM RANSHOFEN/Austria.
• Blast furnace automation with expert systems for
ERDEMIR / Turkey.
• Metallurgy services: provision of stainless steel production
know-how to JIANG YIN XING CHENG, Jiang
Yin City/PR China.
• Acquisition of MECANICA DEL CENTRO S.A./Spain
by VAI COSIM, in order to round off the product range
in the downstream section of our customer value
added chain.
• Automation business expansion through the purchase
of the Belgium company A.I. Systems, an
internationally respected software house for steel
industry production planning and control.
• Acquisition of VAALMAC ENGINEERING/South Africa
to strengthen maintenance and outsourcing business
with the South African steel industry.
Metallurgy sales
1998 – 2000
EUR m
Metallurgy EBITA
1998 – 2000
EUR m
Metallurgy sales
by region 2000
Western Europe
Central and Eastern Europe, CIS
Near and
Middle East,
Africa
Asia/Pacific
North and
South America
(country of final destination)
1,247
858
1,055
1998 1999 2000
87
42%
50
1998 1999 2000
8%
7%
-26
7%
36%
27

28
Hydro Power Generation

Market situation
Opportunities for growth in the service/
refurbishing and compact hydro plant
sectors. New customer structures due to
deregulation and privatisation.
As the most economical source of renewable energy,
hydro power has an approximately 20% share of global
electricity production and therefore numbers among
the most important sources of primary energy. It is
forecast that this share will increase in the coming
years, mainly as a result of the growing sense of
environmental awareness, but also due to the obligations
derived from the Kyoto protocol (“Green Power”)
and the EU’s plans to focus on renewable forms of
energy (“Aqua Stream”).
During 2000, global electricity demand rose by around
2.5%. In the medium- and long-term, a steady increase
in worldwide consumption can be anticipated due to the
population trends, whereby attractive growth rates are
especially likely in the emerging industrial nations.
Generation of electricity has also increased in recent
years by 2.3% p.a.
The world market volume for electromechanical equipment
for hydro power plants amounts to approximately
EUR 2.6 bn annually. The competition is dominated by
four major suppliers, which hold a combined market
share in excess of 80%. The price situation remains
tense, not least due to market deregulation. The market
for electromechanical deliveries for new plants (mainly
generators and turbines) is currently stagnant.
Business opportunities are primarily available in the
services/refurbishing sector, where there are growth
rates of over 5% p.a., even in the industrialised nations.
In the case of the latter, this is mainly the result of the
fact that due to the life cycle curve, updates are required
in many European and North American hydro power
plants, which will be linked to improvements in performance.
In the increasingly competitive electricity sales
market, it is vital that power production is reliably made
available by the appropriate technology at precisely the
right time. This also creates chances to secure optimised
electricity production through new technologies
and suitable process know-how. As a source of renewable
energy, compact hydro plants of up to approximately
15 MW offer interesting future perspectives,
particularly in relation to the financial support potential
available from individual state and European institutions.
The concentration process among our increasingly
privatised customers is making rapid strides. The
customer focus lies on the attainment of favourable
market positions, not only in the generation sector, but
also power distribution and electricity sales.
Investment in electrical power generation is increasingly
coming from IPPs (Independent Power Producers) and is
then being completed by EPC (Engineering/Procurement/Construction)
companies. This trend has led to the
demand for complete “water to wire” solutions from
suppliers.
Electricity generation 1990 – 1998
KWh bn 1990 1998 Average
growth p. a.
1998 - 2010
North America 3,609.5 4.347.2 2.4%.
Latin America 498.8 712.8 4.6%
Western Europe 2,360.9 2,731.9 1.8%
Central/Eastern Europe, CIS 1,976.6 1,490.2 -3.5%
Middle East 228.9 373.3 6.3%
Africa 308.3 382.4 2.7%
Far East 2,354.6 3,577.7 5.4%
World total 11,337.7 13,615.6 2.3%
Source: Energy Information Administration, December 1999
Electricity generation by fuel
% 1990 1997 2010 2015 2020
Oil 11 9 9 9 9
Gas 15 17 21 23 26
Coal 38 36 35 35 34
Nuclear 16 17 14 12 10
Renewables 20 21 21 21 21
Total 100 100 100 100 100
Source: Energy Information Administration/International Energy
Outlook 2000
29

30
A comparison of investment and operating costs shows
that hydro power is currently the lowest cost form of
renewable energy generation.
Market trends
Share1) of order intake
Plants Services
• Western Europe 40% � �
• Central/Eastern Europe, CIS 3% � �
• Near/Middle East, Africa 9% � �
• North/South America 39% � �
• Asia/Pacific 9% � �
1) Share of Hydro Power Generation division order intake in 2000
In regional terms, Brazil, India, China and Turkey remain
the most important markets, while service business
predominates in Western Europe and North America.
In already liberalised markets, gas turbines and combined
cycle power plants have gained further ground as
an economic solution for the short-term provision of
basic load, due to their short construction period
requirement and their environmental friendliness.
Business development
Global top 2 position.
Hydro Power Generation
Energy generation costs
Technology Capital costs Operating costs Fuel costs Capacity factors
Renewable energy sources
USD/kW c/kWh c/kWh %
• Solar (PV) 6,000 – 9,000 1.5 0 10 – 20
• Wind 1,000 – 1,600 1 – 2 0 20 – 40
• Hydro power 900 – 3.000 > 0.5 0 20 – 50
• Biomass
Fossil energy sources
1,100 – 1,800 0.9 – 1.5 0.5 – 1.5 70 – 85
• Gas (combined cycle plants) 500 – 800 0.4 – 0.6 1.3 – 2 75 – 85
• Coal 1,250 – 1,700 0.5 – 0.8 1 – 2 75 – 85
• Nuclear 1,700 – 2,500 1.5 – 2 1 – 1.5 75 – 85
Source: Renewable Energy in the EU; 1998 Financial Times
As a result of the purchase of the Sulzer AG Hydro
Division (brand name Escher Wyss) at the beginning of
2000, VA TECH has become the second largest global
supplier in the hydro power generation sector, with a
leading position in the growing market for power plant
refurbishment. This ranking was determined on the basis
of references comprising 18,000 installed turbines with
total output of 220,000 MW.
The aim is a positioning as a “life cycle partner” for our
customers, in particular through sizeable expansion in
refurbishing and service business with new products
and services, using available VA TECH know-how (e.g.
integrated automation) and high levels of customer
proximity in local markets. In the area of gas-fuelled,
combined cycle power plants, VA TECH has enjoyed
highly successful co-operation with GENERAL ELEC-
TRIC/USA since 1991. This has resulted in strong
positions in Europe and selected markets.
Hydro Power Generation key figures
EUR m 2000 1999 Change 99/00
• Order intake 637 542 + 18%
• Order backlog 978 827 + 18%
• Sales 738 436 + 69%
• EBITA 38 30 + 27%
• EBIT 33 30 + 10%
• ROS 5.1% 6.9% -
• ROCE 8.0% - -
• Employees 3,011 1,603 + 88%
Order intake, sales and result growth.
Order intake increased by 18% over the past year,
primarily due to the integration of the hydro business of
Sulzer AG. The focus of new orders was clearly on
services/refurbishing. The deliveries of turbo generators
to GENERAL ELECTRIC proceeded in a highly satisfactory
manner. Sales rose by 69% to EUR 738 m. As
compared with 1999, the operating result (EBIT) went up
by 10% to EUR 33 m, the EBITA by 27% to EUR 38 m.

Highlights 2000:
• VA TECH/Sulzer Hydro integration was successfully
completed using the “BoB” (Best of Both) programme.
• The JEBEL AULIA project, involving the innovative
use of proven technology. A matrix of 80 compact
turbines (HYDROMATRIX TM ) supply 30.8 MW of clean
and environmentally friendly energy to the Sudanese
power grid.
• Co-operation between VA TECH HYDRO and BC
HYDRO, Canada’s third largest power generation
company, for joint service activities in the North
American hydro power market.
• Equipping of the DCHAR EL QUED/Morocco hydro
power plant with the most powerful turbine yet
installed in North Africa.
• Modernisation of the RIO TAQUESI/Bolivia, BHAN
DARDARA/India, IRON GATE/Romania (largest run of
river power plant in Europe), RHEINGAU/Switzerland
and GROSSRAMING/ Austria power plants through
component supplies and services
• Supply of 54 turbine generators to General Electric.
• Construction of the Peñas Blancas hydro power plant
is the latest proof of VA TECH HYDRO’s market
success and continuity in Costa Rica. Scope of
supply includes two vertical Francis turbines and two
22.2 MVA generators, as well as associated electrical
and mechanical equipment, protective, exitation and
monitoring systems.
• Refurbishment of the CABOT/USA hydro power plant.
Rehabilitation will raise maximum capacity to more
than 10 MW/machine, an increase of 27%.
Hydro Power Generation sales
1999 – 2000
EUR m
Hydro Power Generation sales
by region 2000
Western Europe
Central and Eastern Europe, CIS
Near and
Middle East,
Africa
Asia/Pacific
North and
South America
(country of final destination)
17%
7%
436
18%
17%
738
1999 2000
Hydro Power Generation EBITA
1999 – 2000
EUR m
30
38
1999 2000
41%
31

32
Power Transmission and Distribution

Market situation
Deregulation and privatisation create
price pressure, but also fresh
opportunities. Trend towards turn-key
projects with complex automation.
During 2000, the high-voltage segment of the power
distribution market demonstrated a similar level of order
allocations to that in 1999. The global high-voltage
market volume amounts to around EUR 10 bn. In
addition, worldwide electricity consumption growth of
2.5% p.a. is forecast.
In certain countries, the process of deregulation and
privatisation in the electricity industry is already well
advanced and is set to continue at an even quicker pace
in the key European markets. The UK is playing a leading
role in this regard.
Market opportunities relating to liberalisation derive
from the optimisation and modernisation of existing
networks, new transnational grid links and the outsourcing
of services by power distribution companies.
The trend towards complete, turn-key solutions was
maintained. In Europe, plant optimisation and energy
management and electricity trading systems constitute
market segments with above-average growth
rates.
The pressure on prices was unremitting, as was the
progressive concentration among suppliers. The leading
competitors in the high-voltage segment have a combined
share of the global market of around 60%.
Market trends
Share1) of order intake
Plants Services
• Western Europe 54% � �
• Central/Eastern Europe, CIS 1% � �
• Near/Middle East, Africa 6% � �
• North/South America 27% �/� �/�
• Asia/Pacific 12% � �
1) Share of Power Transmission and Distribution Division order intake
in 2000
Market demand for new plants in Europe was low-key,
although in the UK the renewal of major sections of the
400 MW high-voltage network, commenced in recent
years, is set to continue.
In the USA, the world’s largest high-voltage transformer
market, investments in expansion and equipment replacement
will continue. In Latin America, major highvoltage
system expansion projects are on the threshold
of realisation. The Middle East remains an important
market for compact high-voltage switchgear on the
basis of gas-insulation technology. During 2000, Asia
started to show signs of a slow recovery from the
economic crisis and represents a major pool of longterm,
growth potential.
Business development
Top 3 position for VA TECH in the global
high-voltage sector.
As a result of the successful integration of Ferranti-
Packard, Peebles, Reyrolle, which was purchased from
Electricity consumption 1990 – 2020
KWh bn 1990 1997 2005 2010 2015 2020 Average
growth p. a.
1990 - 2020
Industrialised nations 6,353 7,287 8,252 8,960 9,628 10,255 1.5%.
Eastern Europe/CIS 1,906 1,484 1,550 1,720 1,873 2,115 1.6%
Emerging economies 2,265 3,489 4,911 6,145 7,328 9,203 4.3%
World total 10,524 12,260 14,713 16,826 18,828 21,574 2.5%
Source: Energy Information Administration, International Energy Outlook 2000
33

34
Power Transmission and Distribution
Rolls Royce in 1998, VA TECH belongs to the market’s
leading international suppliers. VA TECH Transmission &
Distribution (T&D) offers customer advantages throughout
the entire plant life cycle by means of everything
from high-quality, technological components to complete
plants, which are supplemented by automation and
services.
VA TECH Transmission and Distribution has also entered
into a global co-operation with SCHNEIDER ELECTRIC/
France, which has further strengthened its position as a
leading world market supplier.
Power Transmission and Distribution
key figures
EUR m 2000 1999 Change 99/00
• Order intake 661 724 - 9%
• Order backlog 589 663 - 11%
• Sales 752 729 + 3%
• EBITA 51 44 + 16%
• EBIT 38 37 + 3%
• ROS 6.8% 6.0% -
• ROCE 7.0% - -
• Employees 4,899 5,330 - 8%
Improved margins through restructuring.
Order intake in 2000 stood at EUR 661 m, which was 9%
below the figure for the previous year. This was due to
the receipt of a major order in 1999 and the divestment
of the high-voltage insulator business area at the
beginning of 2000, which was not part of core business.
Sales were up by 3% at EUR 752 m and the operating
result before goodwill amortisation rose by 16% to EUR
51 m over the previous year, thus providing a sales
margin of 6.8%.
Ongoing measures aimed at restructuring and increased
efficiency, as well as the disposal of peripheral business,
resulted in an 8% reduction in staff levels as compared
with the preceding year.
.
During 2000, additional growth was achieved in both the
automation and services business segments. The newly
developed SAT PROPHET energy management software
was successfully launched. This helps power
supply companies to deal with changed business
processes in a liberalised energy market. A general
contract was signed with a regional electricity supplier in
the UK, which involves the comprehensive modernisation
and servicing of network systems.
The Transformer Business Area underlined its leading
market position in the US high-performance transformer
market. In the switchgear segment (transmission),
targeted, efficiency upgrading programmes were
used for further improvements in cost structures. As a
result, important switchgear orders were won in both
the highly competitive Asian and Middle Eastern
markets.
“Alliance for Growth” between VA TECH
and Schneider Electric in the highvoltage
sector.
On October 17, 2000, VA Technologie AG and Schneider
Electric S.A. announced the formation of a global
partnership, which strengthens the position of both
companies as a global player in the T&D business.
The alliance incorporates the foundation of a 60/40 joint
venture in the high-voltage business area. VA TECH
Transmission and Distribution will bring in its transmission
and service area, while Schneider Electric will
contribute the entire high-voltage business of its subsidiary
Schneider Electric High Voltage (SEHV). The new
company will operate under the name VA TECH
Schneider High Voltage. VA TECH T&D has a 60% stake
in the joint venture, Schneider Electric 40%. In addition,
Schneider Electric will transfer its transformer production
plants to VA TECH T&D for integration into the
existing transformer business within the Group. The new
company group will be the number 3 in the global highvoltage
business sector. The contract came into force
on January 22, 2001.

This alliance will be further cemented by a comprehensive,
worldwide co-operation agreement, covering the
entire power transmission and distribution business
field, including the medium-voltage sector, which is a
Schneider Electric core area. Teamwork between the
two companies commenced immediately and business
integration has already been successfully started.
Product and process optimisation is taking place within
the framework of an integration project, which is aimed
at achieving a future-oriented technology and services
structure. Major cost advantages will derive from economies
of scale, joint research and development and joint
sales and distribution.
Highlights 2000:
• Focus on core processes through the sale of the
high-voltage insulator business area.
• Orders for gas-insulated substations for THE
NATIONAL GRID COMPANY/UK.
• Orders for the PHAK DOENG/Thailand 500 KV
substation as part of the expansion of the highvoltage
network in the Bangkok region. Local independent
power producers will be connected to this
network, thus providing the industrial infrastructure
with important support.
• Successful marketing of the new SAT PROPHET
energy management system, which offers comprehensive
solutions for the changed business processes
in liberalised energy markets.
• Several orders for gas-insulated switchgear from Asia
(Pakistan, Thailand, Singapore), which confirm the
strong market position of VA TECH T&D in this
important region.
• A five-year general contract with NEDL, a major
regional network operator in north-east England,
which underpins the strategy in the services and
solutions area.
Power Transmission and Distribution sales
1999 – 2000
EUR m
EUR m
729
752
1999 2000
Power Transmission and Distribution EBITA
1999 – 2000
Power Transmission and Distribution sales
by region 2000
Western Europe
Central and Eastern Europe, CIS
Near and
Middle East,
Africa
Asia/Pacific
North and
South America
(country of final destination)
12%
24%
44
12%
2%
51
1999 2000
50%
35

36
Water Systems

Market situation
High market potential, concentration
process among customers and suppliers.
As a result of rising population numbers and living
standards, in 2000 the market for water and wastewater
technology continued to demonstrate high potential,
particularly with regard to services and operational
management. The Latin American, Asian, Near and
Middle Eastern regions all showed above average
growth of around 4%, while Western Europe was stable
with about 1%.
On the one hand, the market and the competitive
situation are characterised by large French water suppliers
with integrated engineering firms, and on the other,
by an extensive number of SMEs, based on special
technologies and/or operating within a strictly limited
regional area. There is also a growing trend among large
energy supply companies (in Germany, e.g. E-ON, RWE)
towards a positioning as multi-utility suppliers and
hence the assumption of an increasingly powerful,
international role as water providers.
Due to the general trend towards the full or partial
privatisation of the public water supply, a positioning in
the maintenance management, plant management and
operator models segment has become a prerequisite for
plant builders, in order to open up additional attractive
market potential.
Market trends
Share1) of order intake
Plants Services
• Western Europe 56% � �
• Central/Eastern Europe, CIS 5% � �
• Near/Middle East, Africa 22% � �
• Asia/Pacific 17% � �
1) Share of Water Systems Division order intake in 2000
The most important market globally, Western Europe,
showed a stable, high market volume and continuing
growth. The Near/Middle East offers good opportunities,
especially in the sea and brackish water desalination
sector. The Asian market has enormous potential,
particularly in view of the medium-term expectation of
economic recovery in South-East Asia. South America
also has major project potential with an increased trend
towards BOT (Build Operate Transfer) models.
Water consumption
In km3 1950 1995 2025 Growth
1995 – 2025
Agriculture 700 1,750 1,900 9%
Industry 20 80 100 33%
Municipalities 20 50 100 100%
Reservoirs 10 200 220 10%
Total 750 2080 2320 12%
Source: World Water Vision 2000, rounded figures
Business development
As a result of the WABAG acquisition at the beginning of
1999, VA TECH WABAG now heads the market in the
German-speaking area (Germany, Austria, Switzerland)
and is a leading international supplier with a complete
range of water and wastewater treatment technologies.
Water Systems key figures
EUR m 2000 1999 Change 99/00
• Order intake 325 249 + 31%
• Order backlog 368 330 + 12%
• Sales 317 253 + 25%
• EBITA 12 -12 -
• EBIT 12 -14 -
• ROS 3.8% -4.9% -
• ROCE 7.4% -21.7% -
• Employees 805 684 + 18%
Successful turnaround, growth in all
key figures.
Order intake and sales showed strong growth over the
preceding year, with 31% and 25% respectively. This
growth was partially due to the WABAG acquisition. The
successful turnaround, involving a streamlining of the
management structure, location mergers, the renegotiation
of employment contracts, a sales offensive and a
37

38
range of other measures for greater efficiency, demonstrated
positive effects. The operating result (EBIT) was
transformed from minus EUR 14 m in 1999 to plus EUR
12 m in 2000.
Expansion in the after sales services, plant management
and maintenance areas is planned.
Highlights 2000:
Water Systems
• Order for a municipal sewage plant for KAYSERI/
Turkey, which apart from engineering, delivery, installation
supervision and start-up, also includes one year
of operational management.
• Order for the FAJIR PETROCHEMICAL CO WATER
TREATMENT PACKAGE/Iran water treatment plant,
which will cover both petrochemical and municipal
requirements. The scope of deliveries incorporates
the entire engineering and equipment supply over a
12-month project period.
• Order for a municipal fluidised bed drying plant from
SUSTEREN/Netherlands, which in addition to design,
delivery, installation supervision and start-up, also
involves the complete approval planning process and
a 6-month operational management period.
• Order for the SKW TROSTBERG/Germany industrial
wastewater treatment plant. This turn-key plant
project, which is due for completion in 18 months,
comprises the entire engineering, delivery, installation
and start-up.
• Order for the modernisation of three wastewater
plants for the CHENNAI METROPOLITAN WATER
SUPPLY AND SEWERAGE BOARD/India in
Koyambedu and Kodungaiyer over a project period of
18 months.
Water Systems sales
1999 – 2000
EUR m
Water Systems EBITA
1999 – 2000
EUR m
Water Systems sales
by region 2000
Western Europe
Central and Eastern Europe, CIS
Near and
Middle East,
Africa
Asia/Pacific
(country of final destination)
10%
11%
253
317
1999 2000
-12
9%
12
1999 2000
70%

Sustainable and renewable
As a high-tech provider, we operate on the interfaces between economy and
ecology. Therefore, we are committed to sustainable development with all
our supplies and services. Our goal is sustainable technologies. Ingenious,
environmentally sound solutions, which take special account of renewable
energy, and represent an investment in our future.
39

40
Industrial Services

Market situation
Favourable economic situation,
positive market environment for
“life cycle services”.
Positive economic developments in the focus markets of
Germany and Austria offered a variety of opportunities.
In particular, export-based customer branches showed
stronger growth than the basic materials and energy
industries, which are more single market oriented.
Infrastructure investments continued to develop
favourably, as did the outsourcing of industry-related
services. However, the pressure on prices was also
unrelenting during 2000.
The economic environment in Hungary and Poland
developed in a similarly positive manner and the
economy of the Czech Republic revived markedly
following years of stagnation.
Against a background of concentrations and rationalisation
in the production industry sector, a “full service”
market segment steadily established itself with competent
suppliers. The current market development thus
confirmed VA TECH’s adoption of a comprehensive “life
cycle services” strategy.
Studies by international business consultants forecast
growth in the European industrial services market from
approximately EUR 130 bn in 1998 to around EUR 230
bn in 2005, which corresponds with annual growth of
some 8%.
In addition, a range of new service products will be
created around the Internet, e.g. e-commerce, that are
currently difficult to estimate, but which will certainly
change the classic industrial landscape in Europe and
offer enormous market opportunities.
Modernisation in the basic materials
industry, dynamism in the automotive and
infrastructure sectors.
The economic environment in the plant building sector
varied greatly. While at present, companies in the
chemical, petrochemical and energy distribution sectors
are focused on investments aimed at increased productivity,
increasing competitive dynamism and globalisation
in the automotive sector has led to a significantly
higher need for additional capacity. Shorter model
cycles and the growing number of niche models have
resulted in the fact that the growth rate in the body in
white assembly line area exceeds that of the automotive
industry itself.
Due to the capacity reserves discovered in the course of
liberalisation, the energy supply companies in Germany
and Austria are building only a limited number of new
power plants. Therefore, upgrading, rationalisation and
automation projects predominate in the low- and medium-voltage
area. The infrastructure sector profited
from an increasing construction volume in various
industrial and public fields.
Outsourcing and facility management
show high market potential.
The trend towards concentration in the process and
manufacturing industry sector, which is being fuelled by
the capital markets and globalisation, resulted in an
increase in the outsourcing of maintenance services and
the operational management of peripheral plants. Market
growth in Europe was above the 5% p.a. mark,
which is making this area steadily more attractive to
plant builders as a means of counteracting branch
cyclicity. The facility management (building and industrial
infrastructures) market also showed a disproportionately
strong annual growth rate of 10% and more.
Here, too, the trend is towards “single source outsourcing”,
involving the allocation of orders for complete
packages.
These developments favour suppliers with an extensive
range of competences, such as VA TECH Industrial
Services, rather than medium-sized, commercial services
companies.
Information technology demonstrates
steady growth.
Information technology services continued to benefit
from the uninterrupted trend towards the outsourcing
of operational and services functions. The Internet
computing area, particularly in connection with crosscompany
management and application operation,
provides additional potential. Internet technology
growth segments such as e-business, customer relations
and supply chain management are of increasing
importance.
41

42
During the second half of 2000, there was a slight drop
in the extremely high growth rate. This was due to the
value corrections and price slumps among “new
economy” shares on the global stock markets. Despite
this fact, experts forecast sustained growth in the IT
systems and services sector.
Market trends
Share1) of order intake
Plants Services
• Western Europe 86% � �
• Central/Eastern Europe, CIS 10% � �
1) Share of Industrial Services Division order intake 2000
Business development
Industrial Services
The Industrial Services Division is active in the areas of
electrical and mechanical plant building and the outsourcing
of complementary services. The aim is the
provision of “life cycle services” for customer value
creation through plant engineering and services, operational
and maintenance management, personnel services
and facility management. The scope of these
competences predestines the division to be a supplier of
comprehensive packages, which is in precise accordance
with the trend described in the more highly
developed, internationalised markets.
Industrial Services key figures
EUR m 2000 1999 Change 99/00
• Order intake 1,339 1,239 + 8%
• Order backlog 691 674 + 3%
• Sales 1,307 1,311 0%
• EBITA 59 56 + 5%
• EBIT 57 54 + 6%
• ROS 4.5% 4.3% -
• ROCE 11.0% 10.1% -
• Employees 9,141 9,716 - 6%
As compared with the preceding year, order intake was
raised by 8% to EUR 1,339 m. In combination with
constant sales growth, the operating result (EBIT) went
up by 6% and the EBITA by 5%. Ongoing restructuring
for the optimisation of national and international business
processes led to a staff reduction of 575 employees
over 1999.
During the past year, the Industrial Services Division was
increasingly able to establish itself as an infrastructure
partner to electrical plant building sector companies in
the telecommunications and information technology
growth segments. Orders included acting as a general
contractor for the installation of antennae for a mobile
phone network and for technical building systems in an
Internet Web centre. In line with the “life cycle services”
strategy, it is planned to extend this teamwork with the
customer to partnerships in the facility management
area.
Due to the continuation of the positive investment
climate in the automotive industry, developments in the
transport and assembly system field were equally
satisfactory. Order intake was raised by 30% over the
preceding year, due to major orders from leading
producers and the successful integration of the Spanish
subsidiary ARITEX CAD.ING.
Order intake in the drive technology area was up by 61%
on the figure for 1999. This was mainly due to a further
call for vehicle equipment for the ULF ultra-low floor
tram and the first part of a general contract for local
railway system motor coaches from the ÖBB (Austrian
Federal Railways).
The strategic focus in the mechanical plant building field
was concentrated on high-income business areas. This
resulted in a further consolidation of the position as a
leading “full service” supplier for industrial maintenance
and personnel services.
Despite a weak first six months as a consequence of the
millennium factor, order intake in the information systems
sector remained at the level of the previous year.
The going public of ai informatics AG, which was
planned for October 2000, was cancelled due to the
uncertain stock exchange situation. Subsequent negotiations
with strategic and financial investors did not lead
to a satisfactory conclusion and therefore ai informatics
will remain within the VA TECH Group for the time being.

Highlights 2000:
• A climatic wind tunnel test centre, worth EUR 60 m, is
to be built for RAIL TEST & RESEARCH GmbH/
Austria by VA TECH VOEST MCE, VA TECH ELIN
EBG and a Canadian partner. This facility, which is
intended for rail vehicles, permits the simulation of
winds of over 300 kph under extreme climate
conditions, thus allowing both the testing and certification
of components and the thermal comfort of
vehicles. The order extends from the complete
mechanical plant technology to building, air conditioning
and safety systems and underlines the competence
of the Group division as a supplier of
comprehensive packages.
• Complete body in white welding line for the platform
group of a new DAIMLER CHRYSLER vehicle generation,
as well as several body in white assembly plant
orders for OPEL in Germany.
• Fitting of 54 training centres in Indonesia with training
equipment and teachware by VA TECH VOEST MCE.
This is the second order of this type to be received
from Indonesia by the company in rapid succession.
• Restructuring of EZ Praha. EZ Praha, a Czech
subsidiary of VA TECH ELIN EBG, was subjected to
restructuring, involving a reduction in the work force
to capacity requirements and increases in productivity.
In Poland, the search for appropriate acquisition
candidates for VA TECH ELIN EBG resumed, following
the suspension of the planned purchase of
ENERGOAPARATURA on economic grounds.
• Successful integration of ARITEX. ARITEX CAD.ING
of Spain, which was purchased during 1999 by
VA TECH TMS (Transport and Assembly Systems),
developed in a positive manner. Indeed, as a response
to the favourable order situation, the work
force was enlarged and the information technology
sector upgraded. In the first half of 2000, TMS also
purchased a local South African company for the
production of body in white assembly equipment.
This acquisition has enhanced the possibilities for
access to the growing South African automotive
industry.
Industrial Services sales
1998 – 2000
EUR m
1,269
Industrial Services EBITA
1998 – 2000
EUR m
Industrial Services sales
by region 2000
Western Europe
Central and Eastern Europe, CIS
Near and
Middle East,
Africa
Asia/Pacific
North and
South America
(country of final destination)
1,311 1,307
1998 1999 2000
11%
56
2% 2% 1%
59
1998 1999 2000
-9
84%
43

44
Innovation
Every new challenge represents a step towards tomorrow and an opportunity for
success through innovation. We have some 6,000 patents and a comprehensive
R&D programme. In addition, future-oriented customer solutions are created through
ongoing, further development of technologies.
We also employ the intelligence of e-business and the growth potential of the ”new economy”
to enhance our service range and to optimise the business processes.

Innovation, Research and Development
6000 patents secure the Group’s
technological basis.
Innovativeness not only implies the development of new
technologies and processes. It also means the constant
upgrading of existing capabilities, the early recognition
of future customer needs and their rapid inclusion in
additional products and services.
Long-term technology programmes secure strong competitive
positions for the future, while on-going technological
updates serve the constant customer-oriented
improvement of our portfolio.
The number of patents and patent registrations is
evidence of the innovative strength of our Group. Of
special note is the fact that from a total of 6,000 patents
and patent registrations, 80% relate to the Metallurgy
Division.
In the course of establishing a new VA TECH know-how
database for patents, automatic monitoring has been
installed for new patent issues, using so-called technology
monitoring profiles. These log all the latest patent
publications in our branches and supply them to the
responsible persons.
International research through
co-operation with universities and
development partners.
In comparison with last year, the level of co-operation
with more than 90 national and international universities
was raised still further. It represents a secure guarantee
of teamwork with outstanding specialists.
The following are the most important universities and
institutes with whom we co-operate: Universities of
Leoben, Linz, Graz, Vienna, Vienna Technical College,
Hagenberg Polytechnic; Aachen, Ulm, Munich, Stuttgart,
Jena, Leuna, Darmstadt, Hanover, Braunschweig,
Gerhard Mercator, Freiberg, Wismar, Clausthal; Zurich,
Lausanne; Leicester, Oxford, Cambridge, Liverpool,
Strathclyde, Carnegie Mellon, UMIST, Nottingham,
Bristol, Robert Gordon; Chicago; Peking, Pretoria; Natal/
South Africa, as well as the “Austrian Research Centers”
institute and the CRM/Belgium, IRSID/France, CSM/
Italy, MEFOS/Sweden, RIST/Korea metallurgical research
institutes.
Automation solutions are a development
focus in all areas.
In addition to the use of e-business solutions, automation
and services number among the joint core
competences inherent in all VA TECH business and
facilitate growth with attractive margins. Integrated
solutions, which combine technologies, engineering,
plant building, automation and services, represent one
of the business drivers of the future and provide
enormous customer benefits.
Top automation solutions for the iron and
steel industry.
VAI solutions in the fields of process control and
optimisation, production planning and control, quality
assurance and energy management are the subject of
on-going development and upgrading. A process which
involves the very latest software engineering methods,
such as artificial intelligence and expert systems.
VAiron, the expert system for blast
furnace automation.
In order to be able to control occurrences in a blast
furnace, VAI and experts from VOEST-ALPINE STAHL
LINZ have developed a package solution for blast
furnace automation. VAiron is the world’s first system to
allow an “insight” into the processes taking place
within a blast furnace. The advantages for our
customers are enormous, as the resulting possibilities
for a reduction in coke consumption, use of
cheaper materials and improved productivity, offer
savings of up to USD 40 million p.a. for a blast furnace
with a capacity of 2 million t/y.
On-line contact with customers around
the world.
Permanent on-line links with Metallurgy Division
customers around the world allow the provision of rapid
service performance and sizeable cost reductions. The
new VAIONEER LAB 3 testing centre in Linz carries out
pre-start-up testing and pilot operations and also
provides on-line services for automation systems. The
integration test for the automation systems at the
Bethlehem Steel rolling mill in the USA took place at the
centre. This guaranteed a smooth start-up and reductions
in commissioning time and costs of around 20%.
45

46
Innovation, Research and Development
In the meantime, customers from Germany, the Netherlands,
Venezuela, the USA, South Africa, Saudi Arabia,
India and Australia are all connected with VAI’s experts
via permanent data lines.
Deregulated energy market offers new
chances.
The need for automation solutions is on the increase in
both the power generation and power transmission and
distribution fields.
For example, computer-aided flow simulations (CFD:
Computational Fluid Dynamics) in the hydro power
generation sector are far less complicated than model
tests and meet the rising customer demand for greater
speed, lower costs and better quality in hydraulic
design. As a result of its extensive experience with CFD,
in recent years VA TECH HYDRO has been able to
design a large number of Francis runners without model
testing and then manufacture them directly from the
monitor screen.
In a liberalised electricity market, information systems
for demand-related power transmission are the key to
success for power supply companies, particularly with
regard to electricity trading.
Energy forecast and resource planning with the SAT PROPHET
SAT PROPHET for energy forecasts
With its energy management system SAT PROPHET,
VA TECH SAT offers a concept which permits the
implementation of comprehensive solutions for the
management of new and changed business processes
in liberalised energy markets. The following modules are
available:
• A forecasting system, which deals with estimated
load questions.
• A resource planning system, which assists cost
optimised resource planning in deregulated electricity
markets.
• An electricity trading system, consisting of a database,
which facilitates electricity sourcing through the
calculation of all types of variations and the information
available to dealers (suppliers), network operators
and customers. The electricity trading system
also contains contractual diagrams of the costs/
earnings from electricity trading.
Energy management of growing
importance to industry and municipal
authorities.
In many companies, energy costs represent a major
expense factor. In order to exploit all the possibilities
available for reductions in this expenditure, systems
solutions are required, which extend from data logging
and the automation level to the analysis and evaluation
of the relevant operational data. VA TECH ELIN EBG
offers a complete concept for this purpose, based on its
B.Data energy management and operational information
system. The concept covers everything from control
systems and automatic data logging to superordinated
operational data systems, and information analysis and
evaluation. Transparent energy balances and monitoring
of key figures are major factors in the control of energy
costs.

TOP innovation projects 2000
EUROSTRIP ® thin strip casting process
During 2000, major advances were made in the casting
of stainless and carbon steels using the EUROSTRIP ®
direct steel strip casting process, which is being jointly
developed by VAI in partnership with THYSSEN KRUPP
STEEL and USINOR. This means that the EUROSTRIP ®
partners are on the threshold of commercialising this
technology, whereby VAI has the global marketing rights
for EUROSTRIP ® plants.
Thin strip casting allows the production of hot rolled strip
in a single working process and therefore represents a
technological quantum leap.
HYDROMATRIX TM
HYDROMATRIX TM constitutes a new VA TECH HYDRO
turbine concept (matrix turbines), which employs proven
turbine technology in existing dams and locks. In global
terms, there are a large number of locations where dams
are used for irrigation purposes, or to secure ship
navigation, but not for power generation. For example,
the Mississippi has more than 25 sets of locks and
dams, of which only a few are equipped with a power
plant. Such locations offer an ideal site for the installation
of a HYDROMATRIX TM turbine.
Warp Drive for optimised price/
performance vehicle operation.
The innovative Warp Drive concept for use in local and
regional railway motor coaches exploits the thermal
reserves in the traction drive and is an important
improvement for the customer.
Computer controlled tractive power and an acceleration
reserve allow the correction of train delays in city and
urban railway networks. A major advantage is provided
by the fact that this system can be employed without
enlarging the traction drive system, thus avoiding higher
purchasing costs.
VA TECH Leonardo 2000 innovation
competition
This year saw the fourth presentation of the Leonardo
prizes for the best ideas from Group employees. Patents
have already been registered for nine of the prizewinning
suggestions, which will result in some 70-100
patents worldwide.
From the many entries, “Numerical flow simulation for
hydro turbine optimisation” won first prize in the
“Technical Innovation” category, while “Automation of
robot programming for performance processes” took
the top award in the “Improvements in Business
Processes” section.
Apart from these two categories, special prizes were
awarded for the first time for visionary, original and
international ideas.
47

48
e-business
e-business – a success factor for all
business processes.
Numerous projects in the VA TECH Group during 2000
indicated the increasing role of e-business in company
procedures. Pilot projects were initiated in the Group
divisions, in order to identify success and success
potential as rapidly as possible. In the three theme areas
of sales/distribution, collaboration/project management
and sourcing, applications resulted, which when implemented,
will primarily raise efficiency. “New economy”
instruments and technology can now be integrated into
the “old economy” in order to develop a “promising
economy” for the future.
e-sales brings us closer to the customer.
e-collaboration means increased project
management efficiency.
e-procurement offers new sourcing
possibilities.
VA TECH intends to offer its customers steadily improving
and accelerating service in every business phase
through the use of the latest information and communications
technology. For example, during purchasing, VA
TECH will create value added for all those involved by
means of process packaging and transparency.
As engineering plays a major role in VA TECH projects,
global teamwork with partners along the entire value
added chain is a vital factor in Group business success.
In this regard, the Internet allows the systematic, lowcost
separation of space and time for the very first time.
The ec4ec marketplace, an engineering
quantum leap.
During 2000, VA TECH joined forces with other large
industrial and technology partners to form ec4ec GmbH
(e-commerce for engineered components), the first
electronic marketplace for the mechanical engineering
and plant building sectors. ec4ec GmbH is a VA TECH,
Babcock Borsig AG, mg technologies AG, SAP Markets
Europe GmbH and Deutsche Bank AG joint venture.
The ec4ec Internet platform (www.ec4ec.com) is used to
assist in special engineering and sourcing processes for
companies and sub-suppliers, thus providing far greater
efficiency.
On the basis of the experience and requirements of all
those involved, ec4ec will create a benchmark for the
entire branch with regard to sourcing and teamwork in
the plant building area.
VA TECH’s involvement means that all business processes
will be brought into the marketplace, which will
then develop them further. As a result, we expect a
surge in results, a disproportionately large cost reduction
and still better service for our customers and
employees.

Business plan competition i2b
ideas to business –
The Business Plan Competition for Austria
VA TECH promotes the i2b business plan
competition.
Under the title, “i2b – ideas to business”, VA TECH,
VA STAHL, Bank Austria and the Austrian Chamber of
Commerce have initiated Austria’s largest business plan
competition. “Ideas to business” describes the project
concept, which within the framework of the competition,
foresees the development of economically viable and
innovative technology and services ideas into realisable
business plans. Moreover, i2b goes beyond conventional
competitions, as it seeks to sponsor the transformation
of ideas into practical business strategies rather
than rewarding finished plans.
i2b is tailored to the needs of youthful, technologyoriented
company founders (students, assistant science
lecturers, young employees). Ideas in the areas of
automation, e-business, electrical engineering, information
technology, laser technology, m-commerce,
mechatronics, metallurgy and materials technology,
microelectronics, environment technology and software
can all be submitted.
A business plan is prepared on the basis of the
proposed idea in a three-phase process. Each phase
deals with a separate focal point, either customer
advantages, marketing, or finance planning. The participants
receive individual support from experienced entrepreneurs
and company consultants. In addition, seminars
are held, which precisely match the emphases of
the various phases.
With around 150 entries in the first phase, i2b is one of
the most successful business plan competitions in the
German-speaking area. Numerous participants attended
coaching evenings in Vienna, Linz and Graz, thus
availing themselves of an opportunity for personal
discussions relating to their business plan idea. Approximately
two-thirds of the business ideas revolve around
areas of the “new economy” such as information
technology, e-business or m-commerce.
Your ideas
can make
a career
www.i2b.at
Potential company founders wishing to join in the
competition will find important information concerning
the coaching evenings and participation rules on the i2b-
Homepage (www.i2b.at).
49

50
Human Resources
Integration of new employees.
The integration of 10,000 new employees from the
acquisitions and joint ventures of recent years remained
a focus of activity during 2000. The share of the work
force employed outside Austria amounted to 52% as at
December 31, 2000.
The following special integrative measures were initiated
during 2000:
• Information events, professional and management
training (cross-border, cross-culture, cross-function)
for executive, project and trainee managers from all
the global regions, aimed at promoting team spirit
and inter-cultural understanding of common tasks.
• The harmonisation of existing and development of
new, joint human resource strategies and systems.
• Exchange of employees across all specialist and
functional areas and at every level.
Value-oriented management incentive
scheme.
In order to support a long-term sustained increase in
Group corporate value, from 2001 onwards, top management
will be subject to a value-oriented management
and incentive scheme on the basis of EVA ® (Economic
Value Added).
The fundamental aim of the EVA ® management and
incentive system is target-oriented value added management
and the participation of as many employees as
possible in value creation. The tie-up between value
added and variable payments has the effect that
employees and the company pursue the same goals and
hence “employees become joint entrepreneurs”.
EVA ® demonstrates the extent to which operative
business serves the cost of capital and also creates
value. Linkage to the incentive system results in the fact
that the flexible remuneration of decision-makers is
positively affected by value creation and negatively by
value destruction.
The EVA ® key management figure system has been
successfully introduced at more than 400 companies
around the world. In Austria, VA TECH is leading the way
with its adoption of this management system.
International trainee scheme.
The “International Young Professional Programme 2000”
was started in May 2000, in order to secure trainee
potential. The aim of this globally oriented programme
for young people is to prepare the participants for future
managerial or specialist appointments through on-thejob
training.
At the beginning of the programme, the trainees and
their mentors jointly draw up individual, inter-company
projects, which are aimed at providing extensive experience
within the VA TECH Group. In addition, the topic of
integration management is dealt with as a Group project.
Regular meetings serve to generate team spirit.
A new programme will commence in 2002. More
detailed information is available under www.vatech.at.
Group employees
by region
Western Europe
Central and Eastern Europe, CIS
Near and
Middle East,
Africa
Asia/Pacific
North and
South America
Main countries in Western Europe:
Austria 48% France 3%
Germany 12% Switzerland 2%
UK 8% Others 3%
9%
1%
7%
7%
76%

Human resources
A company´s success depends upon the abilities and
commitment of its people. We attach great value to the
technical and management skills of our domestic and
international employees. It is this competence that forms
the basis for the quality of our work and the satisfaction of
our customers.
Entrepreneurial thinking and doing are part of our
achievement–oriented culture.
51

52
Report of the Supervisory Board
During the 2000 business year, the Supervisory Board carried out the duties allocated to it by law and the articles of
association. Several meetings of the Supervisory Board and the accounts committee were held for this purpose. The
Managing Board provided the Supervisory Board with regular written and verbal reports concerning business
developments and the company’s status, including the situation of Group companies. At its meeting on March 21,
2001, the Supervisory Board examined and approved the Annual Accounts and the Consolidated Annual Accounts for
the 2000 financial year, the proposal for the distribution of profits and the Status Report and Group Status Report for
2000.
The Annual Accounts are thereby confirmed in accordance with §125 Clause 3 of the Aktiengesetz (Austrian Stock
Corporation Act).
The Annual Accounts of VA Technologie AG and the Consolidated Annual Accounts for the financial year 2000, as well
as the Status Report and the Group Status Report, were examined by the auditors selected at the seventh Annual
General Meeting, KPMG Alpen-Treuhand Wirtschaftsprüfungs- und Steuerberatungs GmbH.
Pursuant to § 96 Clause 2 of the Aktiengesetz (Austrian Stock Corporation Act), the Supervisory Board reports that in
their final result, these examinations gave no reason for material objections.
According to the unqualified audit certification:
a) The accounting and the Annual Accounts of VA Technologie AG for the financial year 2000 meet the statutory
requirements, present a true and fair picture of the assets, financial position and profitability of the corporation and
the Status Report conforms with the Annual Accounts for the financial year 2000.
b) The Consolidated Annual Accounts also present a true and fair picture of the assets and financial position of the
Group as at December 31, 2000, as well as the profitability and cash flows in the 2000 financial year, in accordance
with the International Accounting Standards (IAS).
The Supervisory Board endorses the proposal of the Managing Board to distribute a dividend of EUR 18,000,000 (EUR
1.2 per share) from the net profit to be appropriated from the 2000 financial year of EUR 34,001,365 and to carry
forward the remainder of EUR 16,001,365.
Vienna, March 21, 2001
Rudolf Streicher
Chairman of the Supervisory Board

Consolidated VA TECH Annual Accounts 2000
The VA Technologie AG Annual Accounts (individual accounts) for the 2000 business year are
not contained in this Annual Report, but are available on request.
Please contact:
VA Technologie AG
Communications and Investor Relations, Lunzerstrasse 64, A-4031 Linz
Tel.: (+43/732) 6986-9222, Fax: (+43/732) 6980-3416, E-Mail: contact@vatech.at
Note:
As a result of the use of automatic calculation, rounding-related differences may occur in the summation of rounded
amounts and percentages.
53

54
Consolidated Profit and Loss Statement
VA TECH Group
Notes 2000 1999
TEUR TEUR
Sales (1) 3,984,512.5 3,446,892.0
Changes in inventory of finished and unfinished goods and work in progress –103,895.5 –49,900.1
Own work capitalised 3,805.7 4,926.6
Sales plus changes in inventory 3,884,422.7 3,401,918.5
Other operating income (2) 253,865.3 190,392.3
Expenses for materials and services received (3) –2,151,016.9 –1,789,806.3
Personnel expenses (4) –1,108,834.8 –981,169.4
Depreciation and amortisation (5) –109,928.7 –80,199.2
Other operating expenses (6) –675,474.6 –611,606.0
Earnings before interest and taxes (EBIT) 93,032.9 129,529.9
Interest result (7) –113,314.0 –93,299.1
Investment result (8) 58,709.4 8,905.6
Other financial result (9) 3,179.8 –13,269.9
Financial result –51,424.8 –97,663.4
Earnings before taxes (EBT) 41,608.2 31,866.5
Taxes (10) –9,251.1 –8,238.3
Result from discontinuing operations (after taxes) 0.0 –122,305.5
Extraordinary result (after taxes) (11) –6,286.0 0.0
Minority interests 4,241.6 3,245.9
Profit/loss for the period 30,312.7 –95,431.4
Outstanding shares (weighted average) 14,750,000 14,883,008
Earnings per share (profit/loss for the period)
Earnings per share (profit/loss for the period + result from discontinuing
EUR 2.06 –6.41
operations) EUR 2.06 1.81
Proposed dividend TEUR 18,000 18,000
Proposed dividend per share EUR 1.20 1.20

Consolidated Balance Sheet
VA TECH Group
ASSETS
Notes Dec. 31,2000 Dec. 31,1999
TEUR TEUR
Tangible assets (12) 473,547.8 424,627.6
Intangible assets (13) 21,881.4 19,495.9
Goodwill (14) 469,415.5 350,136.9
Financial assets (15) 248,685.6 271,540.3
Inventories (16) 283,708.2 327,008.4
Advance payments made (net) (17) 95,594.9 60,384.3
Trade accounts receivable (18) 1,141,688.4 1,012,201.6
Other assets (19) 424,592.8 524,164.9
Cash and cash equivalents (20) 692,565.6 1,038,951.4
Deferred taxes (21) 88,485.2 83,481.8
Assets 3,940,165.4 4,111,993.1
EQUITY AND LIABILITIES
Share capital 109,050.0 109,050.0
Capital reserves 267,257.6 267,257.6
Retained earnings 199,638.6 199,148.1
Equity (22) 575,946.2 575,455.7
Minority interests 20,248.6 27,161.3
Deferred taxes 18,065.5 15,478.4
Liabilities to banks (23) 647,580.6 741,310.4
Trade accounts payable (24) 737,840.3 691,761.5
Advance payments received (25) 464,115.2 556,644.2
Provisions for pensions, severance payments and long-service bonuses (26) 339,512.2 312,612.5
Other provisions (27) 613,540.1 707,452.3
Other liabilities (28) 523,316.7 484,116.8
Total liabilities 3,325,905.1 3,493,897.7
Equity and liabilities 3,940,165.4 4,111,993.1
55

56
Consolidated Cash Flow Statement
VA TECH Group
TEUR Notes 2000 1999
Earnings before taxes (EBT) 41,608 31,866
+/– Losses/profits from the sale of fixed assets –100,805 –12,423
+/– Depreciation/appreciation of fixed assets 117,005 87,027
+/– Net allocation reversal to employee benefits trust and long-term provisions 7,908 –258
–/+ Taxes paid –19,424 –11,256
Cash earnings (29) 46,292 94,956
+/– Decrease/increase in inventories 83,548 –8,285
+/– Decrease/increase in advance payments made –19,824 –2,706
+/– Decrease/increase in accounts receivable –108,304 –48,954
+/– Increase/decrease in short-term provisions –136,781 –76,796
+/– Increase/decrease in advance payments received –148,740 –68,008
+/– Increase/decrease in liabilities 136,822 62,271
Extraordinary result –6,286 0
Cash flow from operating activities (30) –153,272 –47,521
+/– Profits/losses from the sale of fixed assets 100,805 12,423
+ Disposals of book value 100,192 51,126
– Increases in fixed assets –214,073 –157,693
–/+ Investments/divestitures in shareholdings –95,886 –166,907
+/– Others (currency conversion differences, minority interests) 0 19,919
Cash flow from investing activities (31) –108,962 –241,132
Free cash flow –262,234 –288,653
–/+ Buy-back of own shares, capital contribution from shareholders 0 –20,729
+ Profit participation certificates, subsidies from public entities 421 –287
– Distributions to shareholders –18,000 –36,000
– Distributions to minority shareholders –1,527 –1,804
+/– Increase/decrease in liabilities to banks, bonds and long-term liabilities –182,503 505,520
+/– Increase/decrease in other liabilities/receivables (incl. deferred taxes) 117,458 –63,000
Cash flow from financing activities (32) –84,151 383,700
Net increase/decrease in liquid funds –346,385 95,046
Changes to the financial fund –346,385 95,046
+ Financial fund, beginning balance 1,038,951 943,906
= Financial fund, ending balance 692,566 1,038,951
thereof liquid assets 298,092 523,292
thereof current asset securities 381,891 494,770
thereof receivables from Group clearing 12,583 20,889
Interests paid –104,219 –65,922
Interests received 126,567 99,871
Dividends paid –18,000 –36,000
Dividends received 8,812 12,495

Equity Statement
VA TECH Group
TEUR Share Capital Revaluation Currency Retained Total
capital reserves reserves conversion
differences
earnings
Balance as at Jan. 1, 2000
Changes in the accounting and
109,050.0 267,257.6 7,423.5 15,334.0 176,390.6 575,455.7
valuation methods 0.0 0.0 0.0 0.0 0.0 0.0
Adjusted balance
Changes from the
109,050.0 267,257.6 7,423.5 15,334.0 176,390.6 575,455.7
revaluation of securities
Differences from currency
0.0 0.0 –6,380.4 0.0 0.0 – 6,380.4
conversion 0.0 0.0 0.0 1,124.2 0.0 1,124.2
Other changes
Profits and losses not
contained in the Profit
0.0 0.0 0.0 0.0 –6,566.0 –6,566.0
and Loss Statement 0.0 0.0 –6,380.4 1,124.2 –6,566.0 –11,822.3
Profit/loss for the period 0.0 0.0 0.0 0.0 30,312.7 30,312.7
Dividends 0.0 0.0 0.0 0.0 –18,000.0 –18,000.0
Balance as at Dec. 31, 2000 109,050.0 267,257.6 1,043.1 16,458.2 182,137.3 575,946.2
Balance as at Jan. 1, 1999
Change in the accounting and
109,009.3 288,055.3 14,397.1 165.0 304,154.9 715,781.6
valuation methods 0.0 0.0 0.0 0.0 0.0 0.0
Adjusted balance
Changes from the
109,009.3 288,055.3 14,397.1 165.0 304,154.9 715,781.6
revaluation of securities
Changes for currency conversion
0.0 0.0 –6,973.6 0.0 0.0 –6,973.6
differences 0.0 0.0 0.0 15,169.0 0.0 15,169.0
Other changes
Profits and losses not
contained in the Profit
40.7 0.0 0.0 0.0 3,667.1 3,707.8
and Loss Statement 40.7 0.0 –6,973.6 15,169.0 3,667.1 11,903.2
Profit/loss for the period 0.0 0.0 0.0 0.0 –95,431.4 –95,431.4
Dividends 0.0 0.0 0.0 0.0 –36,000.0 – 36,000.0
Own shares 0.0 –20,797.7 0.0 0.0 0.0 –20,797.7
Balance as at Dec. 31, 1999 109,050.0 267,257.6 7,423.5 15,334.0 176,390.6 575,455.7
57

58
Notes to the Consolidated Annual Accounts 2000
VA TECH Group
GENERAL REMARKS
General Information and
Consolidation Principles
VA TECH is an Austrian-based technology group, with
business activities on a global scale. VA TECH is active
in the following divisions: Metallurgy, Hydro Power
Generation, Power Transmission and Distribution, Water
Systems and Industrial Services. These five divisions
provide a branch-oriented business strategy. The
Group headquarters, VA Technologie AG, are at Lunzerstrasse
64, Linz, Austria.
The VA Technologie AG Consolidated Annual Accounts
are prepared according to the guidelines of the International
Accounting Standards Committee (IASC), London,
effective on the balance sheet date of December 31,
2000.
The annual accounts of those companies included in
the Consolidated Annual Accounts are prepared using
uniform accounting and valuation principles. Individual
annual accounts for the subsidiaries are prepared on
the Group balance sheet date.
Scope of Consolidation
The Consolidated Annual Accounts include VA Technologie
AG, 42 domestic (1999: 39) and 82 foreign subsidiaries
(1999: 81) in which VA Technologie AG directly
or indirectly holds a majority of the voting rights, or
which are uniformly controlled or managed.
The names of consolidated and non-consolidated companies
are reported in the enclosed list of subsidiaries
and affiliated companies. This contains all investments
in subsidiaries and affiliated companies in which the
VA TECH Group has a holding of at least 20%, as well
as the investments in VOEST-ALPINE STAHL AG of
10.93% (1999: 19.93%) and in Babcock Borsig Power
GmbH of 10%.

Changes to Fully Consolidated Companies 2000
Excluding Changes to the Legal Structures of Companies Within the Group
Name Date of initial Type of Type of Remarks
consolidation or consolidation 2) consolidation2) Acquisition Sulzer-Group:
deconsolidation 31.12.2000 31.12.1999
VA TECH Escher Wyss AG, Switzerland 1) 1.1. KVA – Acquisition
VA TECH Escher Wyss GmbH, Germany 1) 1.1. KVA – Acquisition
VA TECH Escher Wyss S.r.l., Italy 1) 1.1. KVA – Acquisition
VA TECH Escher Wyss S.L., Spain 1) 1.1. KVA – Acquisition
VA TECH Escher S.A. de C.V., Mexico 1) 1.1. KVA – Acquisition
VA TECH Escher Wyss Flovel Limited, India 1) 1.1. KVA – Acquisition
Other initial consolidations
VOEST-ALPINE Industria Ltda, Brazil 1.1. KVA – Acquisition
VA TECH WABAG Ltd. (India), India 1.1. KVA – Acquisition
VA TECH AritexCading, S.A., Spain 1.1. KVA – Acquisition
applied international informatics EOOD, Bulgaria 1.1. KVA – Initial consolidation
Deconsolidation
VA TECH Investment (Ireland) Ltd, Ireland 31.12. – KVA Deconsolidation
VA TECH ELIN USA Corporation, U.S.A. 30.6. – KVA Deconsolidation
Baoding Tianwei Reyrolle Electric Company Ltd., China 30.9. – KVA Disposal
Fushun & Reyrolle Bushing Co. Ltd., China 31.3. – KVA Disposal
Entrutech Sdn Bhd, Malaysia 31.3. – KVA Deconsolidation
VOEST-ALPINE Nederland B.V., Netherlands 1.1. – KVA Disposal
Elin Liegenschaftsverwaltung Penzing GmbH & Co KG, Austria 31.12. – KVI Disposal
ai informatics Vertrieb GmbH, Germany 1.1. – KVA Deconsolidation
ai informatics AG, Switzerland 1.1. – KVA Deconsolidation
1)
Companies, the numerical effects of which are reported in the Notes; non-designated companies either have no, or only an immaterial, influence on the changes
to the Group over the previous year
2)
Please see the Schedule of Group Investments for the abbreviations
With effect from January 1, 2000, the SULZER AG Mechanical
Hydraulics Business Area was purchased and
included in the Consolidated Annual Accounts for the
first time. This purchase was made for the strategic
strengthening of the Hydro Power Generation Division.
During the 2000 financial year, the Group was reorganised
in five divisions. In this connection, the former
Group Area, Power and Water, was divided into Hydro
Power Generation, Power Transmission and Distribution
and Water Systems.
Minority interests in the equity of companies included in
the scope of consolidation are reported as a separate
item.
Minority shares in the profit/loss for the period are
reported separately in the Consolidated Profit and Loss
Statement.
59

60
Effects of Changes in the Scope of Consolidation
on the Asset, Financial and Earnings Situation
(EUR m) ESCHER WYSS Group
Fixed assets 40.0
Current assets 151.1
Cash and cash equivalents 40.8
Provisions –79.2
Liabilities to banks –8.4
Advance payments received –81.4
Other liabilities –26.6
Minority interest adjustment –0.3
Equity 36.0
Goodwill 94.0
Purchase price 130.0
Cash and cash equivalents –40.8
Net investment 89.2
In the profit and loss statement, added sales revenues
of TEUR 206,343 result from additions to the scope of
consolidation. Correspondingly, there are expenses for
materials and other related production costs of TEUR
92,402 and personnel expenses of TEUR 61,041.
The Kvaerner Metals Equipment Group (KME) acquisition
was included in the scope of consolidation for the
first time on December 31, 1999. Initial effects on the
profit and loss statement first occurred in the 2000 financial
year. Added sales revenues amounted to TEUR
379,601. Corresponding expenses for materials and
other related manufacturing costs amounted to TEUR
267,637 and personnel expenses to TEUR 82,398.
Methods of Consolidation
The annual accounts of the individual domestic and foreign
companies included in the scope of consolidation
were drawn up on the balance sheet date of the Group
financial statements. They were audited by independent
auditors, approved and, in line with International Accounting
Standards, combined under the fiction of legal
unity.
Capital consolidation took place according to the book
value method. The acquisition costs of the acquired
interests are netted against the book value of the pro
rata equity of the subsidiary at the time of the acquisition.
Positive differences are reported as goodwill and
subjected to linear depreciation according to their
service life.
Within the scope of debt consolidation, trade accounts
receivable, loans and other receivables are netted
against the corresponding liabilities and provisions of
subsidiaries included in the Consolidated Annual
Accounts.
Within the framework of expense and income elimination,
all expenses and income from intra-Group transactions
were netted.
Where material, interim results arising from asset transfers
within the Group were eliminated and recognised as
income. Material interim profits within Group inventories
were also eliminated.
Currency Conversion
As a rule, foreign currency items in the individual annual
financial statements were converted at the exchange
rate on the date of the transaction. If the amounts were
not hedged, monetary items are converted on the
balance sheet date at the conversion rate effective on
the settlement date. Non-monetary items, reported
according to the acquisition cost principle, are reported
unchanged at the conversation rate effective on the
date of their initial inclusion.
Gains or losses arising from the conversion of monetary
items are recognised as income.
The currency of the Group is the EURO (EUR). The functional
currency for foreign subsidiaries is generally the
currency of their respective country.
The modified reporting date rate method is used for the
conversion of the annual accounts of foreign subsidiaries.
Accordingly, all balance sheet items with the
exception of equity are converted at the mean rate on
the balance sheet date. Differences arising from currency
conversion, if attributable to the VA TECH holding,
are netted against retained earnings, or where
attributable to third parties, netted against the minority
interests. The stipulations of IAS 29 (Accounting in High
Inflation Countries) are not employed due to immateriality.

Income and expenses are converted at the mean foreign
exchange rate.
Goodwill from the acquisition of an economically independent
partial unit (subsidiary) is calculated in Group
currency during initial consolidation.
Changes in the currency exchange rates of the following
currencies are of particular importance to the Consolidated
Annual Accounts:
Current Current Change
rate rate
1 EURO equals Dec. 29, Dec. 30, absolute in %
2000 1999
GBP (British pound) 0.6241 0.6217 0.0024 0.39%
USD (US dollar) 0.9305 1.0046 –0.0741 –7.38%
The effects of shifts in currency exchange rates result in
a change in equity of TEUR 1,124 (1999: TEUR 15,169)
when the balance sheet items of consolidated companies
are converted. This difference is reported in the
Equity Statement under the currency conversion differences.
Main Differences Between the Austrian and
IAS Accounting Regulations
Receivables from long-term orders. According to Austrian
accounting law, sales and profits are first realised
upon customer invoicing (completed contract method).
Under the IAS, order completion is cleared using the
percentage of completion method in accordance with
progress and pro rata profit realisation. The extent of
completion is established by means of detailed progress
reports (stage of completion), or in terms of the
costs accrued in relation to the established total costs
(cost-to-cost method).
Deferred taxes. According to Austrian accounting law,
liability side tax deferrals may only be formed where
temporary differences recognised as income occur,
while a selective capitalisation right exists for all asset
side deferrals. Under the IAS, tax deferrals at a currently
valid tax rate must be formed for all temporary differences.
This also applies to any tax losses carried forward,
where these will probably be consumed by future tax
profits.
Provisions for pensions. According to Austrian accounting
regulations, provisions for pensions are formed
according to the discount value method (6% interest
rate), without references to increases in remuneration.
Under the IAS, the valuation of the pension obligations
is based on the expectancy cash value process with a
market interest rate of 6% and a remuneration increase
rate of 2.5%.
Goodwill. While Austrian accounting law prescribes the
redemption of at least one-fifth of capitalised goodwill
per financial year, according to the IAS goodwill can be
distributed over a maximum period of 20 years.
Securities. Securities which are available for sale are reported
at the mark-to-market values or the re-purchase
values. Under the IAS, and as opposed to the Austrian
accounting regulations, upvaluing to a level above the
cost of acquisition is permitted.
Material Events After the Close of the
Financial Year
After the close of the financial year, sales negotiations
were held concerning the possible disposal of the MCE
Group (part of the Industrial Services Division).
61

62
REPORTING AND VALUATION
METHODS
Timing of the Realisation of Profits
Profits are generally considered as realised with the
transfer of risk (at the time of transfer of risk and the
possibility of utilisation) or, respectively, once the service
has been rendered. Interest, licence and rental
income are realised on a pro rata basis.
In order to reflect the contractual progress and the performance
of the company for the period, pursuant to
IAS 11 (Construction Contracts), contracts are subjected
to pro rata profit realisation in accordance with
the extent of completion (percentage-of-completion
method) on the basis of a reliable estimate of the degree
of completion, total costs and income.
Tangible Assets, Intangible Assets,
and Goodwill
Tangible assets are valued at the cost of acquisition or
production, and where subject to wear and tear, depreciated
over their expected service life. Capitalised items
can be of tangible or intangible (e.g. franchise rights) nature.
Movable and immovable tangible fixed assets are
generally subject to linear depreciation. Extraordinary
depreciation is undertaken if a decrease in value is probably
permanent and results indicate that the book
value cannot be realised. Low-value assets are depreciated
in full during the year of their acquisition. Maintenance
and repair costs are reported as expenses. Renovation
and maintenance costs, which increase the
service life of an asset, are capitalised. Manufacturing
costs are depreciated according to the service life of the
item, starting at the time of completion or start-up of the
respective plants.
Anticipated Service Life Years
Buildings 8–50
Plant and machinery 5–16
Factory and office equipment 3–10
Rights 3–10
Goodwill 15–20
According to the IAS regulations, items utilised on the
basis of leasing contracts are reported in the Consolidated
Annual Accounts as tangible assets.
Leasing contracts stipulating that the Group carries all
the risks and opportunities related to the utilisation of
the assets are treated as finance leases. The items on
which the leasing contract is based are reported as assets
at the current value of the capitalised lease payment
and depreciated over the service life. The items
reported as assets are netted against the cash value of
the liability arising from future lease payments on the
balance sheet date.
All items ceded under other types of leasing agreements
are treated as operating leases and are reported as an
asset of the tenant or lessor. Rental payments are reported
as expenses.
Acquired intangible assets (mainly franchise rights) are
valued at the cost of acquisition and are subjected to
scheduled linear depreciation according to their respective
service life.
Positive differences resulting from initial consolidation
are reported as positive goodwill. In the case of negative
differences, a reduction in the positive goodwill is
reported. In accordance with IAS 22 (revised 1998), a
maximum service life of 20 years is assumed for positive
goodwill. Furthermore, remaining goodwill is examined
with regard to its future economic usefulness on each
balance sheet date. Reductions in future usefulness are
reported as extraordinary depreciation. Goodwill amortisation
is reported in the Profit and Loss Statement
under the items Depreciation and Amortisation (goodwill)
and Other Operating Income (negative goodwill).
In accordance with IAS 36 (Impairment of Assets),
should indications of a potential impairment loss of an
asset occur and the net present values of future cash
flows are below the book value, then devaluation to the
lower value provided takes place.
Financial Assets
Except where immaterial, investments in associated
companies are generally valued at equity pursuant to
IAS 28. Basically, the same valuation methods are

applied as those used for fully consolidated companies.
Other investments are valued at the cost of acquisition,
or their lower market value.
Interest bearing loans are reported at nominal value, if they
are not subject to devaluation. Non-interest or low interest
bearing loans are discounted at cash value. Securities
intended to be a lasting part of operations (e.g. securities
legally required for the obligatory cover of the employee
benefits fund) are valued at cost or, if their value is reduced
permanently, at the lower market value. Lower valuations
from prior balance sheet dates are retained.
Inventories
The valuation of inventories takes place at the cost of
acquisition or manufacturing, or at the lower market or
attributed value. Cost is generally determined using the
weighted average price method.
Manufacturing costs include all directly attributable
expenses, as well as all fixed and variable overheads.
Selling costs and general administration costs are not
included in the cost of manufacture. Interest on borrowed
capital relating to manufacture is not reported as
an asset.
Receivables
Receivables and other assets are reported at nominal
values. Downward adjustments are made for individual
recognisable risks. The general receivables risk is generally
accounted for on the basis of past empirical values.
Receivables in foreign currencies are valued at the mean
exchange rate valid on the balance sheet date or, in the
case of hedged exchange rates, at the hedged rate.
Securities
Securities not foreseen for the permanent support of
business operations (available for sale) are reported at
the market value on the balance sheet date (mark-tomarket)
or at repurchase values. If an appreciation in
value is reported on the balance sheet date, which is
above the repurchase value, the positive difference is
reported under the revaluation reserve, with a neutral
effect on the result. If a devaluation of the security is
necessary on the balance sheet date, a previously established
revaluation reserve is reduced, with a neutral effect
on the result. If a security is sold, a previously established
revaluation reserve is reversed and recognised as
income.
Where individual financial services companies deal in
securities, these are valued at market values and all
changes in value are recognised as income.
Cash and Cash Equivalents
Financial assets of a short-term nature are reported
at the market price. The original maturities of the
financial assets at banks and securities reported in this
item are shorter than three months. Receivables from
financing and clearing with maturities of less than three
months are also reported under this item.
Provisions and Liabilities
Provisions are accrued to the amount, which, according
to commercial judgement, is necessary on the balance
sheet date to cover future payment obligations,
recognisable risks and uncertain Group obligations.
Provisions are reported at the most probable amount
following a careful assessment of the situation.
The Group makes appropriate provisions for future
severance payments. The valuation of the future severance
payment obligations is calculated using actuarial
principles.
The pension provisions of domestic and foreign subsidiaries
are calculated on the basis of actuarial expert
opinions using the projected unit credit method. Future
expected pension payments are spread over the period
of employee service until pensionable age. Future anticipated
increases in remuneration are taken into account.
Changes in the actuarial valuation assumptions (life
expectancy, fluctuation rates, early retirement trends,
the current market interest rate on blue chip, fixedinterest
industrial bonds, salary levels and trends,
expected income from the tied assets of a possible 63

64
pension fund) have an effect on each respective balance
sheet date, which is designated as actuarial gains and
losses.
For the first time these Annual Accounts employ a corridor
for the equalisation of fluctuations in the cash value
of the obligation (IAS 19.92). The provisions are calculated
at the beginning of the financial year on the basis of
an actuarial forecast. A subsequent calculation is carried
out on the balance sheet date. Should the provision
made in accordance with the actuarial forecast deviate
by more than 10% from the subsequent calculation, the
difference in excess of the corridor will be compensated
for over the average remaining period of employee service
(15 years) starting in the subsequent financial year.
Provisions for long-service bonuses are also calculated
using actuarial principles.
The premises assumed for the calculation of the provision
for the employee benefits fund regarding discounts,
salary increases, and long-term interest on the fund assets
vary according to the economic situation in the individual
country. Probable life expectancies are calculated
according to country specific life-expectancy tables.
Generally, the following parameters are assumed:
2000 2000 1999
Subsequent
calculation
Forecast
Market interest rate
(discount interest rate) 6.00% 6.00% 6.00%
Remuneration increase rate
Expected, long term interest
2.50% 2.50% 2.50%
on fund assets 7.75% 7.75% 7.75%
Retirement age – women 56 years 55 years 55 years
Retirement age – men 61 years 60 years 60 years
Life-expectancy tables Heubeck Ettl/Pagler Ettl/Pagler
1998 1989 1989
If necessary, a fluctuation discount is calculated for
each individual company.
Other provisions take into account all recognisable risks
and uncertain obligations.
Deferred Taxes. In accordance with IAS 12, all temporary
differences between the tax values and the
IAS balance sheet are included in the deferred taxes.
Deferred tax assets and liabilities are netted wherever
possible. In general, 30% of the remaining tax
assets (1999: 40%) (including those arising from
loss carryforwards) are reported, in order to account
for the prudence principle. Deferred taxes for Austrian
companies are calculated using a tax rate of 34%.
Foreign companies’ taxes are calculated using the
respective local tax rates. The future tax rates anticipated
for the reversal of differences are used for the
deferral.
Liabilities are reported at their nominal value or the
higher repurchasing value. Liabilities in foreign currencies
are reported at the current exchange rate on the
balance sheet date or, in the case of hedged exchange
rates, at the hedged rate.
Use of Estimates
The compilation of the Consolidated Annual Accounts
requires estimates and assumptions, which can influence
the reported values for assets, payables and
financial liabilities at the balance sheet date, as well as
income and expenses for the year under review. The
actual values can differ from the estimated values.
Despite the use of estimates, the true and fair view principle
is maintained.

NOTES TO THE PROFIT AND
LOSS STATEMENT
(1) Sales
Sales for the 2000 business year comprise the following:
TEUR 2000 1999
Sales 3,984,513 3,446,892
Income from construction contracts 2,505,795 2,151,493
Other sales
Net interest from advance
1,361,960 1,179,490
payments received/paid 116,758 115,909
Income from construction contracts includes income
recognised according to the degree of completion of
the individual contract (percentage of completion
method). The determination of the degree of completion
in the Metallurgy Division mainly involves a
comparison of the services rendered on the balance
sheet date with the estimated total contract value on
the basis of detailed project progress reports, or by the
cost-to-cost method.
Due to the high, company specific, advance payment
situation, interest on advance or partial payments is to
be viewed as an additional sales component. This item
is determined by applying an average interest rate for
short- and long-term loans/borrowings of 4% (1999:
4%) to the balance of advance and partial payments
received (reported on the liabilities side or netted
against assets) and advance and partial payments made.
Sales by division and by region are reported in detail in
the information on business segments.
(2) Other Operating Income
The item Other Operating Income comprises:
TEUR 2000 1999
Other operating income
Income from the sale of and
appreciation of assets
253,865 190,392
(excluding financial assets) 42,480 11,484
Income from the reversal of provisions 96,888 63,698
Other 114,497 115,210
The income from the sale of fixed assets is primarily the
result of insurance claims paid to VA TECH Peebles
Transformer Ltd.
The income from the reversal of obsolete provisions
mainly relates to provisions for invoiced projects.
(3) Expenses for Materials and
Services Received
This item comprises:
TEUR
Expenses for materials and
2000 1999
services received
Expense for raw materials
–2,151,017 –1,789,806
(including the use of merchandise) –1,640,413 –1,220,732
Expenses for services received –510,604 –569,074
(4) Personnel Expenses
The item Personnel Expenses comprises the following:
TEUR 2000 1999
Personnel expenses –1,108,835 –981,169
Wages –223,919 –202,904
Salaries –628,320 –548,034
Expenses for severance payments –18,721 –29,460
Expenses for pensions
Expenses for legally required social
contributions and fees and
–28,758 –20,013
compulsory contributions –183,210 –161,972
Other expenses for social security –25,907 –18,786
(5) Depreciation and Amortisation
Scheduled and extraordinary depreciation and amortisation
on tangible assets, intangible assets and goodwill
are shown in the Movement of Fixed Assets schedule.
65

66
(6) Other Operating Expenses
The item Other Operating Expenses comprises the following:
TEUR 2000 1999
Other operating expenses –675,475 –611,606
Travel expenses –102,607 –88,292
Rents, leasing –80,214 –77,457
Risk provisions –69,649 –60,696
Freight and commissions –68,887 –67,221
Auditing and consulting –54,537 –38,981
Bank charges –51,808 –34,880
Communications –38,777 –33,269
Advertising –28,522 –22,445
Insurance –23,477 –22,414
Provisions for receivables –19,469 –22,622
Other including consolidation –137,528 –143.329
(7) Interest Result
The Interest Result comprises the following:
TEUR 2000 1999
Interest result –113,314 –93,299
Interest and similar income
Net interest from advance payments
80,257 70,551
received/paid –116,758 –115,909
Interest and other expenses –62,037 –34,164
Other interest result from hedging 1,989 1,528
Interest on employee benefits fund –16,765 –15,305
The decrease in interest income was mainly the result of
reduced liquidity in connection with acquisitions and
divestitures.
With regard to the net interest on advance payments received/paid,
reference should be made to (1) Sales.
The interest component of allocations to severance and
pension provisions is computed by multiplying 6%
by the present value of the defined benefit obligation
existing on January 1, whereby major changes in the
obligation are taken into account.
(8) Investment Result
The Investment Result comprises the following:
TEUR 2000 1999
Investment result
Income from investments
58,709 8,906
Other affiliated companies 2,551 1,498
Other companies 6,260 10,997
Income from the sale of investments 57,538 3,412
Depreciation on investments
Other expenses from investments
–5,389 –6,051
Fully consolidated companies –196 0
Other affiliated companies –1,992 –304
Other companies –62 0
Expenses from profit pools (inter-company) –1 –5
Losses from the sale of investments 0 –641
The increase in the investment result is mainly due
to the sale of 2,970,000 VOEST-ALPINE STAHL AG
shares.
(9) Other Financial Result
The Other Financial Result comprises the following:
TEUR 2000 1999
Other financial result
Income from the sale of financial assets
and from the appreciation on financial assets
3,180 –13,270
and current asset securities
Expenses from financial investments and
10,416 7,152
current asset securities –7,236 –20,422
The improvement in the other financial result derived
primarily from the mark-to-market valuation of the current
asset securities.
(10) Taxes
In relation to the earnings before taxes (EBT) the average
tax rate is minus 22% (1999: minus 26%). The difference
to the current Austrian corporation tax rate of
34% can be ascertained from the reconciliation below:

TEUR 2000 1999
Taxes on income –22% –26%
Tax-free income –36% –12%
Difference to foreign tax rates
Change in the provision for asset side tax
–4% 3%
deferrals 31% 53%
Losses for which no tax asset was accrued
Tax asset from depreciation on investments/
44% 31%
Losses on divestitures –3% –77%
Consumption of existing tax loss carryforwards
Permanent differences (including taxes from
–10% –36%
outside the period) –34% 30%
Income tax at a tax rate of 34% –34% –34%
(11) Extraordinary Result (After Taxes)
Extraordinary expenses of TEUR 7,000 (TEUR 6,286
after taxes) relate to voluntary payments in accordance
with the “Versöhnungsfondsgesetz” (Austrian Reconciliation
Fund Act).
NOTES TO THE BALANCE SHEET
(12) Tangible Assets
The balance sheet item Tangible Assets comprises the
following:
TEUR 2000 1999
Tangible assets
Real estate, rights equivalent to real estate
and buildings, including buildings on
473,548 424,628
third-party real estate 260,723 244,342
Plant and machinery 113,799 99,175
Other plant, factory and office equipment
Advance payments made and construction
75,378 71,572
in progress 23,648 9,539
A detailed breakdown of the tangible assets combined
in the balance sheet and their development during 2000
is contained in the Movement of Fixed Assets schedule.
There were no restrictions on the use of assets, or assets
pledged as securities.
There are only material commitments for the acquisition
of assets other than those recognised in the balance
sheet.
(13) Intangible Assets
The following items are combined in the balance sheet
item Intangible Assets:
TEUR 2000 1999
Intangible assets
Franchise rights, commercial patents and
trademarks, and similar rights/privileges
21,881 19,496
and derivative licenses 16,212 17,232
Advance payments made 2,631 681
Development costs 3,038 1,583
A detailed breakdown of the intangible assets combined
in the balance sheet and their development during 2000
is contained in the Movement of Fixed Assets schedule.
Development costs were only capitalised where the necessary
preconditions in accordance with IAS 9 Research
and Development Costs were fulfilled. In line
with IAS 9, Research Costs are not reported as assets
and therefore flow directly and entirely into the Profit
and Loss Statement. In 2000, product and process
innovation costs amounted to TEUR 97,882 (1999:
TEUR 81,000).
(14) Goodwill
The increase in goodwill is the result of asset side differences
from the initial consolidation of subsidiaries,
which could not be allocated to hidden reserves.
This item developed as follows:
TEUR
As at Dec. 31, 1999 350,137
Additions from initial consolidation:
– Escher Wyss Group 94,028
– VA TECH AritexCading, S.A. 7,393
– Mecanica del Centro, S.A. 7,122
– Others 2,331
Goodwill adjustments in accordance with IAS 22.71
– KME-Group 33,043
Goodwill adjustments to subsequent purchase
price payments
– in particular FPR-arbitration result 9,090
Other (including goodwill depreciation of
TEUR 32,420) –33,728
As at Dec. 31, 2000 469,416
67

68
Netted negative goodwill amounting to TEUR 1,261
(1999: TEUR 4,874) is shown in this item.
A detailed description of the development of this item is
contained in the Movement of Fixed Assets schedule.
(15) Financial Assets
The item Financial Assets comprises the following:
TEUR 2000 1999
Financial assets 248,686 271,540
Investments in affiliated companies 34,363 36,490
Loans to affiliated companies 1,197 0
Other investments 102,883 138,486
Fixed asset securities (loan stock rights) 89,408 73,502
Other loans 20,835 23,062
Due before one year 766 746
Due after one year 20,069 22,316
On the balance sheet date, the 10.93% investment in
VOEST-ALPINE STAHL AG created hidden reserves of
around EUR 60.9 m. Otherwise the book values of fixed
asset securities do not deviate greatly from the market
prices. The fixed asset securities contain pledged
securities amounting to TEUR 3,864 (1999: TEUR 3,864)
in connection with leasing transactions.
Detailed information concerning Group investments (investments
of more than 20%, plus the investments in
VOEST-ALPINE STAHL AG and Babcock Borsig Power
GmbH) are contained in the Schedule of Group Investments.
Equity and the annual results from foreign subsidiaries
are reported in EURO 1,000 (TEUR), following
conversion at the exchange rate on the balance sheet
date.
(16) Inventories
The item Inventories comprises the following:
TEUR 2000 1999
Inventories 283,708 327,008
Raw materials and supplies 64,173 64,498
Semi-finished products 11,320 10,414
Advance payments received –777 –1,277
Finished products 12,263 10,570
Merchandise 6,585 7,317
Work in progress 189,367 234,209
Advance payments received –68,684 –68,877
Immaterial value adjustments were made to the inventories.
(17) Advance Payments Made
The item Advance Payments Made comprises the following:
TEUR 2000 1999
Advance payments made 95,595 60,384
Due before one year (net) 90,815 59,503
Due before one year (gross) 116,495 186,192
Advance payments received –25,680 –126,689
Due after one year (net) 4,780 881
Due after one year (gross) 6,275 30,327
Advance payments received –1,495 –29,446
(18) Trade Accounts Receivable
The item Trade Accounts Receivable comprises the following:
TEUR 2000 1999
Trade accounts receivable 1,141,688 1,012,202
Receivables from third parties 628,290 611,600
Receivables from construction contracts 2,723,279 3,403.941
Advance payments received –2,234,163 –3,010,764
Receivables from affiliated companies
Receivables from companies in which
17,929 3,643
an investment is held 6,353 3,782

TEUR 2000 1999
Trade accounts receivable 1,141,688 1,012,202
Due before one year 1,021,514 960,569
Due after one year 120,174 51,633
TEUR 2000 1999
Construction contracts
Costs at the balance sheet date
(of all orders not invoiced at the
balance sheet date )
Income at the balance sheet date
(of all orders not invoiced at the
2,828,318 3,446,054
balance sheet date )
Accumulated losses (of all orders
253,065 188,627
not invoiced at the balance sheet date ) –159,318 –185,351
Customers retentions 6,392 4,847
Risk analysis for plant building is performed using a
standardised risk determination system with quarterly
updates employed throughout the VA TECH Group. To
account for risks that occur while estimating the anticipated
total income, valuation adjustments to the receivables
from construction contracts are made according
to the specific risk in individual Business Areas.
(19) Other Assets
The item Other Assets is comprised of the following:
TEUR 2000 1999
Other assets
Receivables from financing and
424,593 524,165
clearing (interest-bearing) 5,551 18,417
Receivables from affiliated companies 5,551 18,417
Due in three months to one year 2,279 15,196
Due after more than one year 3,272 3,221
Other receivables 419,042 505,748
Interest-bearing 125,688 266,103
Due in three months to one year 26,683 25,547
Due after more than one year 99,005 240,556
Non-interest bearing 293,354 239,645
Due in three months to one year 272,117 219,465
Due after more than one year 21,237 20,180
(20) Cash and Cash Equivalents
TEUR 2000 1999
Cash and cash equivalents 692,566 1,038,951
Cash 9,944 3,593
Cheques
Balances at banks with a remaining term
657 482
of up to three months
Securities with a remaining term of
287,492 519,216
up to three months
Receivables from financing and clearing
381,890 494,770
with a remaining term of up to three months 12,583 20,890
From affiliated companies
From companies in which an investment
10,514 20,864
is held 2,069 26
Liquidity
TEUR 2000 1999
Net liquidity 552,683 879,897
Gross liquidity 787,489 1,293,483
Cash and cash equivalents (short term) 692,566 1,038,951
Other interest bearing receivables (short-term) 94,923 254,532
Interest bearing liabilities –234,806 –413,586
Liabilities to banks (short-term) –214,038 –298,264
Other interest bearing liabilities (short-term) –20,768 –115,322
Structure of Invested Gross Liquidity on the
Balance Sheet Date
2000 1999
Money market 37% 43%
Investment funds 63% 57%
(21) Deferred Taxes
In accordance with the balance sheet oriented approach
to the calculation of deferred taxes contained in the IAS,
deferred tax assets and liabilities are calculated
for significant balance sheet items. Where possible,
deferred tax assets and liabilities are netted. Remaining
deferred tax assets (including those from loss carryforwards)
are generally reported at 30% (1999: 40%). In
the case of foreign loss carryforwards, as a rule no
deferred assets are reported, as realisation is insufficiently
secured.
69

70
TEUR Assets Liabilities
2000 1999 2000 1999
Investments 283,569 363,350 0 –337
Receivables and inventories 0 0 –118,401 –233,959
Employee benefit fund 71,347 95,607 –117 –11
Other
Tax loss carryforwards
124,701 41,030 –28,350 –35,395
(basis previous year)
Less balance of deferred
649,100 624,605 0 0
tax liabilities –93,736 –224,178 93,736 224,178
Less decreases in valuation –802,419 –689,050 0 0
Base for deferrals 232,562 211,364 –53,132 –45,524
Tax rate 34% 34% 34% 34%
Balance deferrals 79,071 71,864 –18,065 –15,478
Deferrals from consolidation 9,414 11,618 0 0
Deferred taxes 88,485 83,482 –18,065 –15,478
No taxes were deferred for temporary discrepancies in
connection with shares in subsidiaries.
At the end of the year 1999, there were loss carryforwards
of TEUR 649,100, of which roughly a half derived
from Austria and the remaining half from other countries.
One half of the domestic losses carried forward of TEUR
58,800 will be utilised in 2001 and the other half in 2002.
The foreign loss carryforwards have differing remaining
terms.
(22) Equity
VA TECH Group Equity comprises the following:
TEUR 2000 1999
Equity 575,946 575,456
Paid up share capital 109,050 109,050
Capital reserves 267,258 267.258
Committed capital reserves 127,053 127,053
Uncommitted capital reserves 140,205 140,205
Retained earnings 199,638 199,148
VA Technologie AG share capital comprises 15,000,000
share certificates.
In order to give VA TECH Group employees an opportunity
to participate in the development of share value
within the framework of a share option scheme, 250,000
VA TECH shares were acquired during 1999 and an
amount of TEUR 20,798 netted against uncommitted
capital reserves (thereof TEUR 1,816 par value).
The number of issued shares is 15,000,000. Taking into
account shares held in treasury, there were 14,750,000
shares issued on the balance sheet date (unchanged
over 1999).
Capital reserves were formed during the transfer of assets
at the time of the establishment of VA Technologie
AG and are reduced by own shares.
Retained earnings include revaluation reserves, currency
conversion differences and uncommitted retained
earnings, the net profit/loss for the period and results
from previous business periods carried forward.
The revaluation reserves are reported less possible tax
deferrals. The fall over the previous year is a result of
the income neutral part of the mark-to-market valuation
of securities.
Details concerning the development of the equity of the
VA TECH Group are reported in the Equity Statement
table.
(23) Liabilities to Banks
TEUR 2000 1999
Liabilities to banks 647,581 741,310
Due after one year 433,543 443,046
Due before one year 214,038 298,264
The average interest rate for long-term liabilities to
banks for the period under review is 4.82% (1999:
3.7%), 4.95% (1999: 4.3%) for the entire portfolio. The
average term is 4.2 years (1999: 5.2 years) for longterm
loans and 3.4 years (1999: 2.7 years) for the entire
portfolio.
On the balance sheet date, bank loans covered largely
by securities amounted to TEUR 145,179 (1999: TEUR
151,621).

(24) Trade Accounts Payable
TEUR 2000 1999
Trade accounts payable 737,840 691,762
Due after more than one year 21,876 57,659
To third parties 21,876 57,554
To affiliated companies 0 105
Due before one year 715,964 634,103
To third parties 695,307 622,654
To affiliated companies 19,460 10,317
To companies in which an investment is held 1,197 1,132
(25) Advance Payments Received
TEUR 2000 1999
Advance payments received 464,115 556,644
With a remaining term of more than one year 141,867 140,944
With a remaining term of less than one year 322,248 415,700
Advance payments received on the inventories and
trade accounts receivable of TEUR 2,330,799 (1999:
TEUR 3,166,899) were reported as an asset.
(26) Provisions for Pensions,
Severance Payments and Long-Service Bonuses
The item Provisions for Pensions, Severance Payments
and Long-Service Bonuses comprises the following:
TEUR
Provisions for pensions, severance
2000 1999
payments and long-service bonuses 339,512 312.613
Provisions for pensions 122,436 104,653
Provisions for severance payments 183,236 174,220
Provisions for long-service bonuses 33,840 33,740
Provisions for Pensions
Due to contractual regulations, VA Technologie AG and
its subsidiaries have an obligation to pay employees a
pension supplement upon retirement age. In general,
the amount of the individual pension payment is determined
by the length of employee service. For salaried
and professional employees the retirement pension is
based largely on the final salary, or a fixed amount.
Financial cover for defined benefit plans, subject to which
the company guarantees a certain pension amount, is
mainly provided through the accrual of pension provisions.
The valuation of pension obligations and the
coverage necessary are calculated according to the
projected-unit-credit method described by IASC (IAS 19,
Employee Benefits). This valuation not only takes into
account the pensions existent at the balance sheet
date and accrued rights, but also anticipated future
increases in the valuation parameters. According to
actuarial valuation, the total expense for performancerelated
pension obligations comprises the following:
TEUR
Financing status of
pension obligations
Actuarial cash value of pension obligations
2000 1999
Cash value of pension payments (vested) 259,786 111,093
Cash value of pension payments (unvested)
Cash value of future pension rights
4,158 18,497
(assuming no future salary increases)
Effects of anticipated future remuneration
263,944 129,590
increases 37,777 24,603
Cash value of accrued pension rights 301,721 154,193
Market value of fund assets
Anticipated pension obligations
–179,999 –51,162
less fund assets 121,722 103,031
Unrecognised net profits 714 1,622
Provisions for pensions 122,436 104,653
The fund assets managed by pension funds are mainly
invested in shares, fixed interest securities and real
estate.
Net periodic pension costs for the major pension
funds comprise the following:
TEUR 2000 1999
Net periodic pension costs
Current service costs (cash value of the
19,624 23,472
pension claims acquired during the year) 11,123 5,637
Interest costs 11,683 7,700
Expected return on plan assets –6,073 –341
Actuarial gains/losses 2,891 10,476
71

72
(27) Other Provisions
TEUR 2000 1999
Other provisions 613,540 707,452
Tax provisions 23,836 34,774
Provisions for other personnel expenses 12,166 87,209
Provisions for projects 464,578 403,207
Provisions for invoiced projects 389,240 329,438
Provisions for projects not yet invoiced 75,338 73,769
Other provisions 112,960 182,262
Provisions for restructuring 30,225 54,868
Miscellaneous other provisions 82,735 127,394
Schedule of VA TECH Group Provisions as at December 31, 2000
In particular, provisions for projects include cover for
subsequent costs, impending losses from open business,
as well as for warranties and guarantees. Other
provisions are mainly short-term in nature.
The fall in provisions for other personnel expenses
mainly relates to reclassification to other liabilities of
TEUR 71,138.
TEUR As at Currency Change in Consump- Reversals Alloca- Reclassi- As at
Jan. 1, differences scope of tion tions fications Dec. 31,
Provisions for pensions,
severance payments and
2000 consolidation 2000
long-service bonuses 312,613 154 17,813 12,881 4,782 28,173 –1,578 339,512
Provisions for taxes
Provisions for other
34,774 73 4,574 18,892 9,839 13,113 33 23,836
personnel expenses 87,209 161 4,601 31,284 5,485 28,102 –71,138 12,166
Provisions for projects 403,207 612 48,167 195,321 65,004 267,368 5,549 464,578
Other provisions 182,262 579 5,792 126,907 31,332 112,392 –29,826 112,960
Total provisions
in % of balance sheet
1,020,065 1,579 80,947 385,285 116,442 449,148 –96,960 953,052
total 24.8 24.2

(28) Other Liabilities
TEUR 2000 1999
Other liabilities
Liabilities from financing and
523,317 484,117
clearing transactions 7,101 19,394
To affiliated companies 6,766 18,462
Due after more than one year 146 11
Due before one year
To companies in which an
investment is held (due before
6,620 18,451
one year) 335 932
Paid in capital of silent partners 1,817 1,817
Subsidies 718 700
Profit participation certificates 534 131
Other liabilities 513,147 462,075
Interest bearing 111,127 201,958
Due after more than one year 97,314 106,020
Due before one year 13,813 95,938
Non-interest bearing 365,458 214,745
Due after more than one year 16,791 17,793
Due before one year 348,667 196,952
Deferred income 36,562 45,372
The increase in other liabilities mainly relates to reclassification
of provisions for other personnel expenses of
TEUR 71,138.
NOTES TO THE CASH FLOW
STATEMENT
In accordance with the IAS guidelines, the cash and
cash equivalents fund only contains liquid assets and
current account securities that have an original maturity
of less than three months. Liquid assets and securities
with an original maturity of more than three months are
reported as other receivables. Changes in the scope of
consolidation are eliminated for the respective items in
the five divisions.
(29) Cash Earnings
Cash earnings during the reporting period totalled
TEUR 46,292 (1999: TEUR 94,956). Of this sum, minus
TEUR 31,040 derived from Metallurgy (1999: TEUR
25,131), TEUR 21,274 from Hydro Power Generation,
TEUR 27,193 from Power Transmission and Distribution,
TEUR 7,808 from Water Systems, TEUR 50,217
from Industrial Services (1999: TEUR 60,259) and minus
TEUR 29,160 from other VA TECH cash flow and consolidation
(1999: minus TEUR 31,305).
Due to the reorganisation of the Group in 2000, a comparative
value can only be formed from the combined
result of the Hydro Power Generation, Power Transmission
and Distribution and Water Systems Divisions
amounting to TEUR 56,275. In the 1999 financial year,
this stood at TEUR 40,871.
(30) Cash Flow from Operating Activities
Apart from a drop in the short-term provisions of TEUR
71,138, reallocations within the cash flow from operating
activities also led to an equal increase in the liabilities.
In particular, the negative working capital of TEUR
199,564 derived from the fall in advance payments received
relating to the processing of the project backlog.
Although advance payments for new projects were
received, which included balance sheet date related
payments, these were not of equal size.
(31) Cash Flow from Investing Activities
The income from the disposal of fixed assets and book
value disposals largely derives from the sale of
2,970,000 VOEST-ALPINE STAHL AG shares, insurance
payments to VA TECH Peebles Transformers Ltd.
and the sale of the real estate administration company,
Penzing GmbH & Co KG. Investments in fixed assets
included additional goodwill (EUR 49.7 m), plant, factory
and office equipment (EUR 57.6 m), payments in
advance on tangible assets (EUR 46.8 m), investments
and loans (EUR 22.2 m) and other additions
(EUR 37.8 m).
(32) Cash Flow from Financing Activities
The cash flow from financing activities contains cash
reductions derived from the repayment of liabilities to
banks and dividend payments, which are partly counterbalanced
by the redemption of fixed interest securities.
Following netting, a negative cash flow from financing
activities of minus TEUR 84,151 resulted. 73

74
OTHER FINANCIAL LIABILITIES
Contingent liabilities combines the following items, not
included in the liabilities:
TEUR 2000 1999
Contingent liabilities 237,720 203,744
Guarantees, warranties, sureties 230,956 194,327
Letters of comfort 2,257 4,372
Other contingent liabilities 4,507 5,045
There are open legal disputes in connection with the
pensions statute of MCE Anlagen- und Rohrleitungsbau
GmbH Ratingen, which was taken over in the course of
the “Lentjes” acquisition in 1994. Possible resultant obligations
cannot be estimated.
There are no other major financial obligations, which are
not reported in or under the balance sheet. Reference
should be made to the information contained in “Risk
Management in the Financial Sector”.
OTHER INFORMATION
Risk Management in the Financial Sector
(Group Treasury)
Treasury risk management is regulated uniformly by
Group Directives. Among others, guidelines exist for
the management of interest rate and foreign exchange
risk, for the granting of guarantees and warranties, as
well as for the counterparty risk arising from financial
transactions. An appropriate internal auditing system
As at December 29, 2000, the following foreign exchange spot positions were open:
has been implemented for auditing and controlling risks
resulting from money market and foreign exchange
transactions.
All money market and foreign exchange deals, as well
as interest rate risk and foreign exchange risk hedges
must be contracted with the Group Treasury. Exceptions
to this rule, i.e. direct execution of deals of a
Group company with a third party, require the approval
of the Group Treasury. The Group Treasury splits up the
risks inherent in financial transactions, such as foreign
exchange spot risk and interest rate risk. These positions
are managed and monitored separately.
All Group Treasury activities are subject to strict monitoring
in respect of exposures and settlement procedures.
A specific controlling and auditing procedure
is in place separating trading, back office, internal auditing
and accounting. In particular, internal auditing monitors
counterparty limits, interest rate and foreign
exchange limits, and dealer limits.
Centrally managed investment funds exist for longterm
investing purposes of Group company investments
in EUR, whereby Group companies own certificates
in these funds. The certificates held are valued
according to the lower cost/net realisable value principle.
Futures are mainly used for interest rate hedging
within the investment funds. Foreign exchange risk is
mainly hedged by forward contracts.
According to the respective Group Directive, foreign
exchange exposures of the Group companies must
be completely hedged by transactions executed with
the Group Treasury. The Group Treasury uses forwards,
foreign exchange swaps and foreign exchange options
(only purchase) as derivative financial instruments.
Currency T-FX TEUR Unrealised gain/loss by
+ 10% rate change or historical - 10% rate change or historical
12-month-max. respectively 12-month-min. respectively
USD 878 944 94 –118
GBP 176 282 26 –31
CHF 93 61 6 –7
CZK 1,831 52 5 –6
Others 37 3 –5
1,376 134 –167
Foreign exchange spot rates are used to value the foreign exchange spot positions on the reporting date.

Interest rate risk of the Group is defined as the exposure
to an increase in interest paid and decrease in interest
recovered resulting from financial assets and liabilities.
Hedges are executed with the Group Treasury.
As derivative instruments, forward rate agreements, interest
rate swaps, cross currency swaps and the
purchase of interest rate options are permitted. As at
December 29, 2000, the Group Treasury interest rate
positions in EUR, USD, GBP, CHF, CAD, CZK, DKK,
JPY, NZD and ZAR were open.
Open positions in interest rate derivatives are valued
according to the imparity realisation rule.
The Group Treasury is entitled to run open interest rateand
foreign exchange positions within a Value-at-Risklimit
approved by the VA TECH Managing Board. Based
on a confidence level of 99% and a foreign exchange
Finance Lease Agreements
and interest rate risk-position holding of ten days, following
key figures were calculated as at December 29,
2000:
TEUR
Fair Value 15,126
Value-at-Risk 151
Leasing Agreements
In line with IAS regulations (IAS 17 Leases (revised 1997))
items utilised under leasing agreements are reported as
tangible assets.
The value of these assets, the corresponding liabilities
or respective payables, as well as incidental information
can be seen in the following tables:
TEUR 2000 1999
Tangible assets: net book values at the balance sheet date 38,290 38,722
Minimum lease payments at the balance sheet date 48,045 50,249
Cash value of the minimum lease payments due before one year 5,124 4,516
Base interest rate 5.5% 6%
Cash value of the minimum lease payments due after one year and up to five years 14,003 13,626
Base interest rate 5.5% 6%
Cash value of the minimum lease payments due after more than five years 20,960 20,906
Base interest rate 5.5% 6%
Finance lease agreements relate mainly to Group company buildings in Vienna and Linz.
Operating Lease Agreements
TEUR
The total of future minimum lease payments, due to irrevocable operating lease agreements for the
2000 1999
following periods: 203,117 161,264
Less than one year 36,473 29,386
More than one year but less than five years 124,224 101,926
More than five years 42,420 29,952
The total future lease payments at the balance sheet date, expected from irrevocable subleasing agreements:
Payments from leasing and subleasing agreements included in the result for the period under review, divided
428 467
into amounts: 17,797 24,854
Total minimum lease payments included in the result for the period under review 17,302 24,452
Payments from subleasing agreements included in the results for the period under review 495 402
The increase in future minimum lease payments mainly relates to a rented office building in Vienna.
75

76
Information on Business Segments
Segment Information by Group Area
(Primary Segments)
In accordance with IAS 14 (revised 1997), the five divisions
Metallurgy, Hydro Power Generation, Power Transmission
and Distribution, Water Systems and Industrial
Services are considered the primary segments, as this
structure reflects both the internal management organisation
and reporting of the VA TECH Group. In 1999 the
divisions Hydro Power Generation, Power Transmission
and Distribution and Water Systems were shown as a
joint Group Area.
Metallurgy
The VA TECH Metallurgy Division is a leading international
metallurgical plant builder with a multinational company
structure and a systems supplier for both individual
and integrated plants.
Hydro Power Generation
The VA TECH Hydro Power Generation Division is a
global supplier of electromechanical equipment and
services (“Water to Wire”) for hydro power plants.
VA TECH HYDRO comprises the hydro activities of
VA TECH ESCHER WYSS, VA TECH MCE and
VA TECH ELIN. VA TECH HYDRO is the second largest
supplier in the hydro power generation sector and
holds a leading position in the power plant refurbishment
growth market.
Power Transmission and Distribution
The VA TECH Transmission and Distribution Division is
a leading international supplier of electrical power transmission
and distribution systems and offers integrated
systems solutions and cutting edge technology, individually
tailored to the customers’ needs.
Water Systems
The VA TECH Water Systems Division is an international
systems supplier with a complete range of water and
wastewater treatment technologies and a global network
of business units.
Industrial Services
The VA TECH Industrial Services Division is an international
systems supplier in high-grade engineering
and technical services, with networked mechanical,
electrical and electronic competences.
TEUR Metallurgy Hydro Power Power Transmission
Generation 1) and Distribution 1)
2000 1999 2000 1999 2000 1999
External sales 1,053,193 855,442 690,954 436,400 722,700 729,241
Internal sales 1,333 2,896 46,830 n.a. 2) 29,644 n.a. 2)
Investments in tangible and intangible fixed assets 19,242 12,740 11,781 n.a. 2) 55,081 n.a. 2)
Investments in shareholdings 17,385 60,936 130,000 n.a. 2) 51 n.a. 2)
Assets 1,481,665 1,538,078 593,229 n.a. 2) 639,696 n.a. 2)
Depreciation and amortisation (excluding financial assets) –26,553 –12,002 –17,198 n.a. 2) –30,695 n.a. 2)
Liabilities 1,169,532 1,159,023 467,415 n.a. 2) 786,821 n.a. 2)
EBIT –36,436 50,246 33,192 n.a. 2) 38,074 n.a. 2)
Employees (on the balance sheet date) 4,136 4,322 2,955 n.a. 2) 4,367 n.a. 2)

TEUR Water Systems 1) Industrial Other VA TECH
Services and consolidation
2000 1999 2000 1999 2000 1999
External sales 317,378 253,440 1,198,911 1,198,151 1,377 15,104
Internal sales 0 n.a. 2) 108,539 112,513 –186,346 –126,089
Investments in tangible and intangible fixed assets 2,817 n.a. 2) 35,488 36,035 2,049 2,252
Investments in shareholdings 0 n.a. 2) 3,928 11,718 1,174 1,696
Assets 296,652 n.a. 2) 908,993 880,544 19,930 176,189
Depreciation and amortisation (excl. financial assets) –5,250 n.a. 2) –29,082 –29,581 –1,151 –1,816
Liabilities 234,491 n.a. 2) 785,772 729,826 –118,126 373,337
EBIT 12,059 n.a. 2) 56,769 54,120 –10,625 –31,636
Employees (on the balance sheet date) 835 n.a. 2) 8,871 9,500 177 163
1) In the previous year reported as part of the former Power and Water Group Area
2) Not applicable; unavailable due to legal restructuring
TEUR VA TECH Group
total
2000 1999
External sales 3,984,513 3,446,892
Internal sales
Investments in tangible and intangible
0 0
fixed assets 126,458 111,490
Investments in shareholdings 152,538 98,379
Assets
Depreciation and amortisation
3,940,165 4,111,993
(excl. financial assets) –109,929 –80,199
Liabilities 3,325,905 3,493,898
EBIT 93,033 129,530
Employees (on the balance sheet date) 21,341 21,711
Segment Information by Region (Secondary Segmentation)
Internal sales show sales between divisions. These are
conducted at current market prices and in general are
the same as those with third parties (at arm’s length
principle).
Information concerning the business development of the
individual divisions can be found in the Status Report.
EUR m Austria Western Europe Central-/Eastern Europe Near and Middle
CIS
East, Africa
2000 1999 2000 1999 2000 1999 2000 1999
External sales 708 769 1,528 1,178 379 308 262 400
Assets 4,879 4,705 2,070 1,900 44 55 0 0
Investments 69 128 181 49 1 2 0 0
EUR m Asia/Pacific North and South Other VA TECH VA TECH Group
America and consolidation total
2000 1999 2000 1999 2000 1999 2000 1999
External sales 341 387 767 405 0 0 3,985 3,447
Assets 88 102 325 237 –3,466 –2,887 3,940 4,112
Investments 2 21 25 9 1 1 279 210
77

78
Information Concerning Closely
Associated Companies
The VA STAHL Group is designated as a closely associated
company due to reciprocal equity holdings
(below 20%). The Metallurgy Division achieved sales
to the VA STAHL Group of TEUR 55,275 (1999:
TEUR 16,957) and order intake of TEUR 24,957 (1999:
TEUR 20,119). There is also close co-operation involving
the sale of industrial services through VOEST-
ALPINE INDUSTRIAL SERVICES GmbH & Co.
Information Concerning Corporate Bodies
and Employees
As at December 31, 2000, 21,314 employees (1999:
21,711) were employed by companies included in the
Consolidated Annual Accounts.
Severance and pension payments for the 2000 business
year, including those of subsidiaries and sub-subsidiaries
were distributed as follows:
Linz, on March 1, 2001
VA Technologie AG
The Managing Board
TEUR 2000 1999
Severance payments and pensions
Managing Board members/
48,690 49,473
Executive management 7,946 9,834
Other employees 40,744 39,639
Emoluments amounting to TEUR 3,710 (1999: TEUR
4,927) were disbursed to active and retired Managing
Board members during 2000.
Emoluments of TEUR 78 (1999: TEUR 78) were disbursed
to the active members of the VA Technologie AG
Supervisory Board. TEUR 50 (1998: TEUR 45) were
expended for reimbursements. No such payments
were made to former members of the Supervisory
Board.
No advance payments or loans were granted to the
members of the VA Technologie AG Managing and
Supervisory Boards.
Erich Becker Horst Wiesinger Georg Antesberger Richard Guserl Roland Scharb
Chairman Vice Chairman Member of the Board Member of the Board Member of the Board

Auditors Report
To the Supervisory Board and Shareholders of
VA Technologie Aktiengesellschaft:
We have audited the Consolidated Annual Accounts of
VA Technologie Aktiengesellschaft as at December 31,
2000, prepared by the Company in accordance with the
International Accounting Standards (IAS) issued by the
International Accounting Standards Committee (IASC).
The Consolidated Annual Accounts are the responsibility
of the Company’s Managing Board. Our responsibility
is to express an opinion on the Consolidated Annual
Accounts based on our audit. In some cases the audits
of Group subsidiaries included in the Consolidated Annual
Accounts were carried out by other auditors. As far
as these subsidiaries are concerned, our opinion is
based solely on the report of the other auditors.
We conducted our audit in accordance with the Austrian
principles and practices of auditing and the International
Standards on Auditing issued by the International Federation
of Accountants (IFAC). Those standards require
that we plan and perform the audit to obtain reasonable
assurance about whether the Consolidated Annual
Accounts are free of material misstatement. An audit
includes examining on a test basis, evidence supporting
Linz, March 1, 2001
KPMG Alpen-Treuhand
Wirtschaftsprüfungs- und Steuerberatungs-GmbH
the amounts and disclosures in the Consolidated Annual
Accounts. An audit also includes assessing the
accounting principles used and significant estimates
made by the management, as well as evaluating the
overall financial presentation. We believe that our audit
provides a reasonable basis for our opinion.
Attention is drawn to note (1) Sales, with regard to the
inclusion of an interest component in the sales.
In our opinion, the Consolidated Annual Accounts present
fairly, in all material respects, the financial position
of the Group as at December 31, 2000 and 1999, as
well as the results of its operations and its cash flows
for the 2000 and 1999 financial years, in accordance
with the International Accounting Standards (IAS).
Pursuant to Austrian commercial law, the Status Report
and the Group’s adherence to requirements for exemption
from the compilation of Consolidated Annual Accounts
prepared in accordance with the Austrian Commercial
Code must be examined.
In our opinion the Status Report complies with the Consolidated
Annual Accounts and the legal requirements
for an exemption from the obligation to compile Consolidated
Annual Accounts in accordance with the
Austrian Commercial Code have been met.
Johann Lummerstorfer Gabriele Lehner
Chartered accountant Chartered accountant
and tax consultant and tax consultant
79

80
Consolidated Movement of Fixed Assets
VA TECH Group
Acquisition/manufacturing costs
TEUR Balance as at Currency Change in the Additions
Jan. 1, 2000 differences scope of
consolidation
I. Tangible assets
1. Real estate, rights equivalent to
real estate and buildings, including
buildings on third-party real estate
a) With residential buildings
Land value 2,659.7 104.0 0.0 300.1
Building value 7,582.4 81.1 0.0 1,632.0
b) With office, factory or
other buildings
Land value 54,133.8 326.9 –4,967.2 367.0
Building value 329,937.5 2,505.0 12,217.9 8,823.1
c) Vacant land 1,507.9 31.6 5,594.3 23.7
2. Plant and machinery 260,505.5 3,680.8 51,537.9 22,311.1
3. Other plant, factory and
office equipment 232,080.3 1,057.0 13,973.9 35,284.5
4. Advance payments made and construction in progress 9,539.3 211.9 229.1 46,834.1
897,946.4 7,998.3 78,585.9 115,575.6
II. Intangible assets
1. Franchise rights, commercial patents
and trademarks, and similar rights/privileges
and derivative licenses 54,896.7 279.2 –273.8 6,988.5
2. Expenditure relating to the start-up and
expansion of operations 544.3 15.8 85.8 0.0
3. Advance payments made 681.0 7.6 0.0 2,058.5
4. Development costs 1,582.6 0.0 0.0 1,835.6
57,704.6 302.6 –188.0 10,882.7
III. Goodwill 369,230.9 2,348.2 15,307.7 143,728.3
IV. Financial assets
1. Investments in affiliated companies 46,278.2 45.3 –10,148.0 17,748.3
2. Loans to affiliated companies 590.7 0.0 730.0 1,218.4
3. Other investments 279,249.0 22.6 2,236.6 3,221.6
4. Loans to companies in which an
investment is held 855.6 0.0 0.0 0.0
5. Fixed asset
securities (loan stock rights) 75,048.7 0.3 375.6 14,895.4
6. Other loans 23,172.6 0.9 668.5 802.3
425,194.7 69.1 –6,137.3 37,886.0

Disposals Reclassifi- Balance as at Revalua- Accumulated Book value as Book value as Depreciation
cations Dec. 31, 2000 tions depreciation at Dec. 31, 2000 at Dec. 31, 1999 during the
business year
0.0 –1,409.7 1,654.1 0.0 –0.1 1,654.1 1,822.4 0.0
362.6 –2,404.6 6,528.3 0.0 1,430.8 5,097.5 6,347.5 266.3
2,379.6 –617.1 46,863.9 0.0 9,614.7 37,249.2 44,579.6 413.5
9,893.1 27,041.2 370,631.5 399.4 161,052.1 209,579.5 190,098.5 11,965.4
0.0 0.0 7,157.5 0.0 14.8 7,142.7 1,493.8 0.7
13,370.3 22,977.7 347,642.6 0.0 233,843.8 113,798.8 99,175.1 22,816.0
22,884.1 –14,311.9 245,199.6 0.0 169,822.1 75,377.6 71,571.5 33,287.4
636.0 –32,524.4 23,654.2 0.0 5.7 23,648.5 9,539.3 5.7
49,525.7 –1,248.7 1,049,331.7 399.4 575,783.9 473,547.8 424,627.6 68,755.0
7,996.8 7,397.4 61,291.1 0.0 45,078.8 16,212.3 17,232.3 8,370.4
0.0 –85.7 560.2 0.0 560.2 0.1 0.0 0.0
0.0 –115.3 2,631.8 0.0 0.4 2,631.4 681.0 0.4
0.0 12.9 3,431.1 0.0 393.5 3,037.6 1,582.6 380.6
7,996.8 7,209.3 67,914.3 0.0 46,032.8 21,881.4 19,495.9 8,751.4
1,569.5 –5,657.4 523,388.1 0.0 53,972.6 469,415.5 350,136.9 31,658.2
10,745.5 3,172.7 46,351.0 0.0 11,987.5 34,363.5 36,489.6 4,988.8
15.9 –9.0 2,514.2 0.0 1,317.6 1,196.6 0.2 0.0
40,441.0 –294.7 243,994.1 0.0 141,110.9 102,883.2 138,486.6 352.1
0.0 0.0 855.6 0.0 855.6 0.0 0.0 0.0
374.2 350.8 90,296.6 27.9 888.8 89,407.8 73,502.1 –191.0
1,129.9 –326.6 23,187.7 5.2 2,353.2 20,834.5 23,061.8 2,310.2
52,706.5 2,893.2 407,199.3 33.1 158,513.7 248,685.6 271,540.3 7,460.1
81

82
Schedule of Group Investments
VA TECH Group
Name Abbre- Registered Coun- Parent Consol- Percentage Equity as at Net result Reason Note
viation Office try Company idation holding Dec. 31, 2000 2000 for
form % TEUR TEUR cons.
Fully consolidated companies
VA Technologie AG VA Tech AG Linz AT – KVI – – a)
applied international informatics (Holding) GmbH AIIDH Berlin DE AII KVA 100.00 4,428 a)
applied international informatics AG AII Vienna AT VIS KVI 100.00 20,349 a)
applied international informatics EOOD AIIBB Sofia BG AII KVA 100.00 276 a) S
applied international informatics GmbH AIIGS Dusseldorf DE AIIDH KVA 100.00 19,156 a) S
applied international informatics GmbH & Co. KG SEITZ Pforzheim DE AIIGS KVA 100.00 3,145 a)
ASTA Elektrodraht GmbH ASTAG Oed AT TAD KVI 95.00 2,959 a)
SAT KVI 5.00 a)
ASTA Elektrodraht GmbH & Co ASTA Oed AT HYDROA KVI 100.00 6,608 a)
Bohr- und Rohrtechnik Gesellschaft m.b.H. BUR Vienna AT VAM KVI 100.00 5,619 a)
British Short Circuit Testing Station Ltd BSTS Hebburn GB VATUK KVA 100.00 –56 a) S
CG ELIN Power Systems Private Ltd CGELA Mandideep IN EEVG KVA 50.00 515 a) S
Deutsche VOEST-ALPINE Industrieanlagenbau GmbH DVAI Dusseldorf DE VAIG KVA 100.00 24,649 a)
Elektromontazni Zavody Praha a.s EZPRA Prague CZ EEE KVA 90.00 5,201 a) S
ELIN EBG Elektrotechnika Sp.z.o.o. EEP Warsaw PL EEE KVA 98.00 676 a) S
VIS KVA 2.00 a) S
ELIN EBG Traction GmbH ETR Vienna AT EEE KVI 74.00 13,546 a)
ELIN Seilbahntechnik GmbH & Co KG EST Innsbruck AT EEE KVI 74.00 307 a)
ELIN Transformer Guangzhou Co Ltd ETGC Guangzhou CN ETGG KVA 61.00 12,250 a) S
FUCHS de Mexico, SA de CV FUMEX Monterrey MX FUUSA KVA 51.00 1,412 a) S
FUCHS Systems Inc FUUSA Salisbury US FUSTD KVA 100.00 –5,371 a) S
FUCHS Systems UK Ltd FUUK Scunthorpe GB FUSTD KVA 100.00 1,829 a) S
FUCHS Systemtechnik GmbH FUSTD Legelshurst DE VAIG KVA 49.00 15,688 a)
MCE Anlagen- und Rohrleitungsbau GmbH LMCE Ratingen DE DVAMCE KVA 100.00 –22 a)
MCE Instandhaltungs- und Industrieservice GmbH LII Ratingen DE VH KVA 100.00 32 a)
P.T. VAI ASIA ASIA Jakarta ID VAIG KVA 80.00 2,826 a) S
PT VATECH South East Asia MCEIND Jakarta ID VA Tech AG KVA 87.00 665 a) S
VATI KVA 13.00 a) S
Rohrleitungs- und Behälterbau Aschersleben GmbH RA Aschersleben DE PIPETEC KVA 99.00 5,003 a)
VA TECH Anlagenservice Deutschland GmbH VEA Leuna DE DVAMCE KVA 100.00 4,128 a)
VA TECH (UK) Ltd VATUK Hebburn GB VA Tech AG KVA 100.00 59,500 a) S
VA TECH America Corporation VAIC New York US VATI KVA 100.00 18,202 a) S
VA TECH AritexCading, S.A. AX Badalona ES TMSG KVA 100.00 9,427 a)
VA TECH Asset Management (Ireland) Ltd VATAM Dublin IE VA Tech AG KVA 100.00 51,445 a) S
VA TECH Beteiligungen GmbH VATB Linz AT PART KVI 100.00 118,816 a)
VA TECH BOUVIER HYDRO SA BH Grenoble FR EEVG KVA 100.00 1,180 a)
VA TECH Chemserv Industrie Service GmbH CS Linz AT VAMCE KVI 74.00 1,999 a)
VA TECH Clearing GmbH PARTC Vienna AT PART KVI 100.00 39 a)
VA TECH Consulting-Engineering GmbH & Co VACE Linz AT IFAS KVI 100.00 1,172 a)
VA TECH Deutschland GmbH VACPF Berlin DE VA Tech AG KVA 100.00 2,490 a)
VA TECH EBG Transformatoren GmbH & Co EBGTR Linz AT TAD KVI 100.00 10,473 a)
VA TECH ELIN EBG Elektronik GmbH EEL Vienna AT EEE KVI 100.00 6,795 a)
VA TECH ELIN EBG GmbH, Duisburg EED Duisburg DE EEE KVA 100.00 755 a)
VA TECH ELIN EBG GmbH, Linz EEE Linz AT VIS KVI 100.00 103,799 a)
VA TECH ELIN EBG Haustechnik GmbH EEI Linz AT EEE KVI 99.99 2,338 a)
PART KVI 0,01 a)
VA TECH ELIN EBG Motoren GmbH EMG Vienna AT EEE KVI 100.00 6,520 a)
VA TECH ELIN EBG VECO Kft EEU Budapest HU EEE KVA 100.00 440 a) S
VA TECH ELIN Energietechnik GmbH EET Berlin DE TMH KVA 100.00 1,753 a)
VA TECH ELIN Holec High Voltage BV EHH Amersfoort NL ENH KVA 100.00 40,742 a)
VA TECH ELIN NL Holding BV ENH Amersfoort NL TMH KVA 100.00 31,094 a)
VA TECH ELIN Service BV ESB Amersfoort NL ENH KVA 100.00 3,618 a)
VA TECH ELIN Transformatoren GmbH ETGG Weiz AT TAD KVI 100.00 5,093 a)
VA TECH ELIN Transformatoren GmbH & Co ETG Weiz AT HYDROA KVI 100.00 16,891 a)
VA TECH ELIN Transmission GmbH EEVTM Vienna AT TMH KVI 100.00 4,483 a)
VA TECH Escher S.A. de C.V. EWMX Morelia MX EWZK KVA 86.46 1,887 a) S

Name Abbre- Registered Coun- Parent Consol- Percentage Equity as at Net result Reason Note
viation Office try Company idation holding Dec. 31, 2000 2000 for
form % TEUR TEUR cons.
VA TECH Escher S.A. de C.V. EWMX Morelia MX EWR KVA 13.54 a) S
VA TECH Escher Wyss AG EWZK Kriens CH HV KVA 100.00 24,780 a) S
VA TECH Escher Wyss Flovel Limited EWF New Delhi IN EWR KVA 61.50 803 a) S
VA TECH Escher Wyss GmbH EWR Ravensburg DE DVAMCE KVA 100.00 11,564 a)
VA TECH Escher Wyss S.L. EWE Madrid ES HV KVA 100.00 1,730 a)
VA TECH Escher Wyss S.r.l. EWI Schio IT HV KVA 100.00 1,306 a)
VA TECH Ferranti-Packard de México, SA de CV FPMEX Guanajuato MX TAD KVA 100.00 15,725 a) S
VA TECH Ferranti-Packard Transformers Ltd FPSCAT St. Catharines CA TAD KVA 100.00 2,708 a) S
VA TECH Finance GmbH FIN Vienna AT VA Tech AG KVI 100.00 9,412 a)
VA TECH Finance Ireland Ltd VATFI Dublin IE FIN KVA 100.00 1,859 a)
VA TECH Gerätetechnik GmbH VAGT Wels AT PIPETEC KVI 100.00 2,947 a)
VA TECH HYDRO GmbH EEVG Vienna AT VA Tech AG KVI 100.00 6,011 a)
VA TECH Hydro GmbH & Co HYDROA Vienna AT VA Tech AG KVI 100.00 68,677 a)
VA TECH Hydro Vevey SA HV Vevey CH EEVG KVA 100.00 8,232 a) S
VA TECH Industrial Services GmbH VIS (EEH) Vienna AT VA Tech AG KVI 100.00 139,275 a)
VA TECH Industriefacharbeiter-Service GmbH & Co
VA TECH Industriehansa Consulting & Engineering
IFAS Linz AT VAMCE KVI 100.00 7,891 a)
GmbH & Co IH Munich DE IHE KVA 100.00 2,044 a)
VA TECH Industriehansa Entwicklung GmbH IHE Munich DE DVAMCE KVA 100.00 2,297 a)
VA TECH Insurance Ireland Ltd VATIIL Dublin IE VATRE KVA 100.00 4,565 a)
VA TECH International GmbH VATI Linz AT VA Tech AG KVI 100.00 2,457 a)
VA TECH Participation GmbH & Co KEG PART Linz AT VA Tech AG KVI 99.00 13 a)
PARTG KVI 1.00 a)
VA TECH Peebles Transformers Ltd PEEB Edinburgh GB TADUK KVA 100.00 18,872 a) S
VA TECH Properties (Ireland) Ltd PROP Dublin IE VA Tech AG KVA 100.00 4,773 a)
VA TECH Properties (UK) Ltd OPCUK Isle of Man GB VA Tech AG KVA 100.00 7,037 a) S
VA TECH Reinsurance (Ireland) Ltd VATRE Dublin IE FIN KVA 100.00 5,610 a)
VA TECH Reyrolle ACP Limited REY Hebburn GB VATUK KVA 100.00 71 a) S
VA TECH Reyrolle Ltd ORANGE_TR2 Hebburn GB VATUK KVA 100.00 1,658 a) S
VA TECH Reyrolle Pacific Ltd PAC Wellington NZ TMH KVA 100.00 4,577 a) S
VA TECH Reyrolle Projects Ltd PRO Hebburn GB VATUK KVA 100.00 35,459 a) S
VA TECH SAT AG SATSW Hünenberg CH SATB KVA 85.00 424 a) S
VA TECH SAT Beteiligungsverwaltung GmbH SATB Vienna AT SAT KVI 100.00 2,273 a)
VA TECH SAT GmbH SATM Planegg DE SATB KVA 100.00 2,974 a)
VA TECH SAT GmbH & Co SAT Vienna AT TAD KVI 49.95 9,298 a)
HYDROA KVI 49.95 a)
SATG KVI 0.10 a)
VA TECH Schneider High Voltage GmbH
VA TECH Transformateurs Ferranti-Packard
TMH Vienna AT TAD KVI 100.00 38,167 a)
(Québec) Inc FPTRIV Trois Rivières CA TAD KVA 100.00 1,265 a) S
VA TECH Transmission & Distribution GMBH
VA TECH Transmission & Distribution
TADG Vienna AT VA Tech AG KVI 100.00 –4 a)
GMBH & Co KEG TAD Vienna AT VA Tech AG KVI 100.00 7,496 a)
VA TECH Transmission & Distribution NL B.V. TADNL Amersfoort NL TAD KVA 100.00 18 a)
VA TECH Transmission & Distribution UK Limited
VA TECH Transport- und Montagesysteme
TADUK Hebburn GB TAD KVA 100.00 0 a) S, iG
Beteiligungs GmbH
VA TECH Transport- und Montagesysteme
TMSG Linz AT VIS KVI 100.00 11,268 a)
Deutschland GmbH
VA TECH Transport- und Montagesysteme
RK Gersthofen DE TMSG KVA 100.00 1,565 a)
GmbH & Co
VA TECH VOEST MCE Deutschland
VATMS Linz AT VIS KVI 100.00 15,468 a)
Beteiligungs GmbH DVAMCE Ratingen DE VAMCEG KVA 100.00 49,489 a)
VA TECH VOEST MCE GmbH VAMCEG Linz AT VA Tech AG KVI 99.95 119,037 a)
PART KVI 0.05 a)
VA TECH VOEST MCE GmbH & Co VAMCE Linz AT VA Tech AG KVI 100.00 14,911 a)
VA TECH VOEST MCE Leuna GmbH MCELEU Leuna DE DVAMCE KVA 100.00 40 a)
VA TECH VOEST Zeltweg Montage GmbH & Co VAZM Zeltweg AT VAMCE KVI 100.00 –846 a) 83

84
Name Abbre- Registered Coun- Parent Consol- Percentage Equity as at Net result Reason Note
viation Office try Company idation holding Dec. 31, 2000 2000 for
form % TEUR TEUR cons.
VA TECH WABAG AG, Winterthur CTW Winterthur CH AE KVA 100.00 1,459 a) S
VA TECH WABAG Belgium SA WABBRU Brussels BE WABGER KVA 98.00 273 a)
VA TECH WABAG Deutschland GmbH AEMFU Zwenkau DE AE KVA 100.00 18,143 a)
VA TECH WABAG Deutschland GmbH & Co KG WABGER Berlin DE AEMFU KVA 100.00 13,867 a)
VA TECH WABAG Fließbett Systeme GmbH CTR Ravensburg DE AEMFU KVA 100.00 4,041 a)
VA TECH WABAG GmbH AE Vienna AT VA Tech AG KVI 99.90 23,648 a)
PART KVI 0.10 a)
VA TECH WABAG Introtec GmbH INTRO Ravensburg DE CTR KVA 100.00 26 a)
VA TECH WABAG Ltd. (India) WABIND Chennae IN AE KVA 100.00 1,498 a) S
VA TECH WABAG UK Ltd. WABADD Adderbury GB AE KVA 100.00 716 a) S
VAI Automation Inc. DIS Benton Harbour US VAII KVA 100.00 3,511 a) S
VAI CLECIM CLECIM Paris FR VAI KVA 100.00 11,246 a)
VAI COSIM S.A. COSIM Bilbao ES CLECIM KVA 100.00 10,979 a)
VAI Industries UK Ltd
VAI TECHNOMETAL Gesellschaft für
VAIUK Poole GB VATUK KVA 100.00 –69,412 a) S
Metalltechnologie mbH TECHM Duisburg DE DVAI KVA 100.00 –1,544 a)
VEA Instandhaltungsservice GmbH & CO KG VEACK Leuna DE VEAB KVA 49.00 30 a)
VOEST-ALPINE Industria Ltda VAI-MS Belo Horizonte BR VAIG KVA 100.00 581 a) S
VOEST-ALPINE INDUSTRIAL SERVICES GmbH VAISG Linz AT VAI KVI 50.00 –229 a)
VOEST-ALPINE INDUSTRIAL SERVICES GmbH & Co VAIS Linz AT VAI KVI 50.00 1,062 a)
VOEST-ALPINE Industrieanlagenbau GmbH VAIG Linz AT VA Tech AG KVI 100.00 92,554 a)
VOEST-ALPINE Industrieanlagenbau GmbH & Co VAI Linz AT VA Tech AG KVI 100.00 191,565 a)
VOEST-ALPINE Industries Inc VAII Pittsburgh US VAIC KVA 85.00 –13,656 a) S
VAIG KVA 15.00
VOEST-ALPINE MCE Belgium NV MCEBEL Stabroek BE PIPETEC KVA 99.80 109 a)
VOEST-ALPINE MCE Berlin GmbH MCEB Berlin DE VH KVA 100.00 80 a)
VOEST-ALPINE MCE Stahlbau GmbH & CO KG MCELCK Leuna DE MCELEUB KVA 49.00 30 a)
VOEST-ALPINE Montage Gmbh & Co VAM Wels AT VAMCE KVI 100.00 4,802 a)
VOEST-ALPINE Services & Technologies Corp VASTP Pittsburgh US VAIC KVA 100.00 5,855 a) S
vom hagen mce GmbH VH Bochum DE PIPETEC KVA 100.00 5,377 a)
Other affiliated companies
A F Pipework & Engineering Ltd PIPE Scunthorpe GB FUUK KOV 100.00 0 0 b) na
Advanced Information Systems S.A. AIS Anderlecht BE VAIG KOV 100.00 –654 3) –749 3) b)
applied international informatics AG AIISS Zurich CH AII KOV 99.98 –143 –363 b)
applied international informatics s.r.o. AIITP Prague CZ AII KOV 100.00 –374 –372 b)
applied international informatics SP z.o.o. AIIPW Warsaw PL AII KOV 100.00 13 0 b) na
applied international informatics SRL AIIRO Bucharest RO AII KOV 100.00 –54 –92 b)
applied international informatics Vertrieb GmbH AIICV Dusseldorf DE AIIDH KOV 100.00 22 –3 b)
ARCMET Technologie GmbH ARCMET Linz AT VAI KOV 100.00 553 3) 15 3) b)
ARGE-Rohrlegung ARGERO Vienna AT VAM KOV 54.00 281 3) 68 3) b)
ARITEXSUR, S.A. AXA Buenos Aires AR AX KOV 100.00 –130 3) –157 3) b)
Ashlow Technology Ltd ASHLOW Poole GB DVAI KOV 5.00 2 0 b) na
VAIUK KOV 95.00 b) na
AVS inzenyring sro AVS Ostrava CZ AE KOV 69.60 –31 161 b) iL
Betriebsführungsges. GWRA Espenhain m.b.H. ESPEN Espenhain DE WABGER KOV 100.00 51 30 b)
BOUVIER HYDRO POWER Inc BHP Berlin/NJ US BH KOV 100.00 –590 3) –169 3) b)
DECOS S.p.A. DECOS Carnate IT VAIMP KOV 80.00 329 3) 81 3) Dr. Stern GmbH Personaldienstleistungen
b)
Ludwigsburg STERNL Ludwigsburg DE IHE KOV 65.00 190 155 b)
Dr. Stern Stuttgart GmbH Personaldienstleistungen STERNS Stuttgart DE IHE KOV 63.60 160 101 b)
DRIVE Scom Internet Business Services GmbH DRIVE Vienna AT EEE KOV 50.00 2,000 0 b)
EEL KOV 50.00 b)
Druha elekteromotazni sro DRUHA Prague CZ EZPRA KOV 100.00 2 0 b)
ELIN EBG Elektroanlagen Bau GmbH EBGDA Burghausen DE EEE KOV 100.00 0 0 b) iL
ELIN EBG ETR s.r.o.
ELIN Elmak Elektromekanik Sistemler Ticaret Ltd
EBG CR Prague CZ EZPRA KOV 100.00 20 –1 b)
Sirketi ELM Ankara TR EEVG KOV 100.00 –210 3)
–311 3)
b)

Name Abbre- Registered Coun- Parent Consol- Percentage Equity as at Net result Reason Note
viation Office try Company idation holding Dec. 31, 2000 2000 for
form % TEUR TEUR cons.
ELIN Immobilienverwaltung GmbH EIG Vienna AT EEE KOV 100.00 96 14 b)
ELIN Immobilienverwaltung GmbH & Co KG EIG-KG Vienna AT EEE KOV 99.00 1,098 292 b)
EIG KOV 1.00 b)
ELIN Iran Commercial and Engineering Co. ELINIRAN Teheran IR EEVG KOV 100.00 0 0 b) na
ELIN Liegenschaftsverwaltung Penzing GmbH PENZMBH Vienna AT EEE KOV 100.00 38 3 b)
ELIN Seilbahntechnik GmbH ESTG Innsbruck AT EEE KOV 74.00 6 3)
–12 3)
b)
Engenharia Hidraulica de Macao Lim. VWMAC Macao CN WABADD KOV 80.00 942 3) 531 3) b)
EPSAG Spolka z organiczona adpowiedzialnoscia EPSAG Cracow PL SAT KOV 35.00 –568 –519 b)
SATB KOV 55.00 b)
ETS Teplice as ETST Teplice CZ EZPRA KOV 100.00 76 –9 b)
Eugen Remmel Rohrleitungsbau GmbH ERR Ratingen DE LMCE KOV 100.00 26 3)
–5 3)
b)
European Electronic Systems Ltd EESV Poole GB VAIUK KOV 100.00 0 33 b)
FUCHS Systemtechnik (South Africa) (Pty) Ltd FUSA Rivonia ZA FUSTD KOV 100.00 363 5) 97 5) b)
FUCHS Thermal Technology (Pty) Ltd FUTSA Rivonia ZA FUSTD KOV 51.00 24 5) 210 5) Gemeinnützige Wohnungs- und Siedlungs-
b)
gesellschaft der VA TECH ELIN GmbH GEWOG Weiz AT EEVG KOV 100.00 6,285 3) 367 3) b)
INMET INMET Dnepropetrovsk UA VAIG KOV 80.00 11 3) 0 3) b)
Korf Direct Reduction Ltd KORFDR Glasgow GB DVAI KOV 100.00 0 0 b) na
LinKoMet Engineering spol sro LinKoMet Kosice SK VAIG KOV 60.00 207 3) 17 3) b)
Mill Maintenance Services MMS Pittsburgh US VASTP KOV 100.00 0 0 b)
P.T. ELIN Indonesia ELINDO Jakarta ID EEVG KOV 51.00 124 2 b)
Pipe-Tec Gerätetechnik Gladbeck Gmbh VAGTD Gladbeck DE VH KOV 100.00 155 3) 0 3) b)
Pipe-Tec GmbH & Co KG PIPETEC Leverkusen DE DVAMCE KOV 50.00 10,021 4) –4 4) b)
Plafog Planungsges.m.b.H. PLAF Kulmbach DE AE KOV 100.00 128 2 b)
RAYEN M&R GmbH RAYMR Duisburg DE EED KOV 100.00 0 0 b) iL
SGP-VA Inc. Canada SGPINC Ontario CA AE KOV 100.00 144 3) –62 3) b) na
VA TECH d.o.o VATKRO Zagreb HR VATI KOV 100.00 0 0 b)
VA TECH VOEST Montage Beteiligungs GmbH VAMG Wels AT VAMCE KOV 100.00 6 3) –11 3) VA TECH VOEST Zeltweg Montage Beteiligungs
b)
GmbH VAZMG Zeltweg AT VAMCE KOV 100.00 35 3) 0 3) b)
VA TECH (Thailand) Co. Ltd VATTHAI Bangkok TH VATI KOV 49.00 125 –8 b)
VA TECH AI Informatics Computer Services GmbH AIIM Ratingen DE AIIDH KOV 100.00 89 78 b)
VA TECH America do Sul VARIO Rio de Janeiro BR VATI KOV 99.98 –2,070 3)
–833 3)
b)
VA TECH Australia Pty.Ltd. VAAUST Sydney AU VATI KOV 99.99 65 3) 2 3) b)
VA TECH Beijing Ltd VATBE Beijing CN VA Tech AG KOV 100.00 45 142 b)
VA TECH Bouvier Canada Inc. BCI Boucherville CA BH KOV 60.00 104 3)
60 3
b)
VA TECH Chemserv Krems GmbH CSKREMS Krems AT CS KOV 100.00 34 3) –1 3) b)
VA TECH Consulting-Engineering Beteiligungs GmbH VACEG Linz AT VAMCE KOV 100.00 18 3) –5 3) b)
VA TECH EBG Transformatoren GmbH EBGG Linz AT TAD KOV 100.00 33 –8 b)
VA TECH ELIN Mexicana, SA de CV ELMEX Mexico City MX TAD KOV 98.00 –198 –346 b)
VA TECH ELIN Peru S.A. ELPER Lima PE EEVG KOV 99.00 20 3) 19 3) b)
HYDROA KOV 1.00 b)
VA TECH ELIN Sr s.r.o. PRVA Bratislava SK EEE KOV 100.00 225 –215 b)
VA TECH ELIN Svenska AB ELSV Stockholm SE EEVG KOV 100.00 64 1 b)
VA TECH ELIN USA Corporation AEC New York US VAIC KOV 100.00 2,442 19 b)
VA TECH Energ Ltda ENERG Belo Horizonte BR EEVG KOV 60.00 –175 –177 b)
VA TECH Escher Wyss S.A.C. EWPE Moyapampa PE EWR KOV 99.90 0 0 b)
VA TECH Holdings (Malaysia) Sdn Bhd VATMY Kuala Lumpur MY VATI KOV 100.00 27 3)
3 3)
b)
VA TECH Industrial Services GmbH (in Gründung)
VA TECH Industriefacharbeiter Personalservice
VATIS Vienna AT VA Tech AG KOV 100.00 0 0 b) iG
GmbH
VA TECH Industriefacharbeiter-Service
IFAS2 Leuna DE IHE KOV 100.00 26 3 b)
Beteiligungs GmbH IFASG Linz AT VAMCE KOV 100.00 18 3)
–5 3)
VA TECH Industriefacharbeiter-Service
b)
Deutschland GmbH IFAS1 Leuna DE IHE KOV 100.00 26 78 b)
VA TECH Industries S.E.A. PTE Ltd VASIN Singapore SG ASIA KOV 100.00 125 3)
37 3)
b)
VA TECH International (Pty) Ltd VASA Randburg ZA VATI KOV 100.00 –3 3)
–3 3)
b)
85

86
Name Abbre- Registered Coun- Parent Consol- Percentage Equity as at Net result Reason Note
viation Office try Company idation holding Dec. 31, 2000 2000 for
form % TEUR TEUR cons.
VA TECH International Argentina SA VAARGE Buenos Aires AR VATI KOV 99.90 25 3) –2 3) b)
VA TECH International de Venezuela CA VOEDEVENCA Caracas VE VATI KOV 100.00 101 3) 20 3) b)
VA TECH International México, SA de CV VAMEX Ciud.de Mexico MX VATI KOV 99.96 49 3) 330 3) b)
VA TECH International of Spain S.A. VAMADR Madrid ES VATI KOV 100.00 150 3) 4 3) b)
VA TECH International spol sro VABRA Bratislava SK VATI KOV 100.00 –12 3) 2 3) b)
VA TECH Investment (Ireland) Ltd VATII Dublin IE AE KOV 25.00 244 1,427 b) iL
EEE KOV 25.00 b) iL
EEVG KOV 25.00 b) iL
VAMCEG KOV 25.00 b) iL
VA TECH Participation Gmbh PARTG Linz AT VA Tech AG KOV 100.00 37 2 b)
VA TECH Patente GmbH VATPA Vienna AT VA Tech AG KOV 100.00 318 75 b)
VA TECH Polska Sp.z.o.o VATPO Wroclaw PL VATI KOV 97.50 0 0 b)
VA Tech AG KOV 2.50 b)
VA TECH Reyrolle (Overseas Projects) Ltd REYOS Hebburn GB VATUK KOV 100.00 384 0 b)
VA TECH s.r.o. VAPRAG Prague CZ VATI KOV 100.00 35 3) –5 3) b)
VA TECH SAT Denmark A/S SATDK Horsholm DK SATB KOV 100.00 130 –5 b)
VA TECH SAT GmbH SATG Vienna AT HYDROA KOV 50.00 114 –1 b)
TAD KOV 50.00 b)
VA TECH SAT Praha , s.r.o. SATPRAG Prague CZ SATB KOV 100.00 870 120 b)
VA TECH SAT Sdn Bhd SATMA Sungay Buloh MY EEIM KOV 43.00 1,253 1,185 b)
SATB KOV 8.00 b)
VA TECH TMS France SARL VATMF Massy FR TMSG KOV 99.92 73 3) 18 3) b)
VA TECH VAMEC HIDRO ENERGETICA Ltda VAMEC Sao Paulo BR EEVG KOV 80.00 –1,008 269 b)
VA TECH VOEST MCE Czech Republic GmbH MCESLA Slany CZ VAMCEG KOV 100.00 2,999 174 b)
VA TECH VOEST MCE Hungary GmbH MCEUNG Nyiregyhaza HU VAMCEG KOV 100.00 1,347 1 b)
VA TECH WABAG Tunisie SARL VWTUN Tunis TN WABBRU KOV 100.00 15 3) 2 3) b)
VA TECH WABAG Brno spol.Sr.o. VWBNO Brno CZ WABGER KOV 100.00 108 3) –27 3) b)
VA TECH WABAG Introtec Schwarza GmbH INTROSCH Rudolstadt DE WABGER KOV 80.00 40 3) 16 3) b)
VA TECH WABAG Italia Srl CTA Rome IT AE KOV 100.00 255 3) 115 3) b)
VA Tech WABAG Mexico, S.A de C.V. VWMEX Mexico City MX AE KOV 99.99 0 0 b) iG
AEMFU KOV 0.01 b) iG
VA TECH WABAG SA Pty. Ltd VWSA Johannesburg ZA AEMFU KOV 100.00 128 3) 0 b)
VA TECH WABAG Tetra GmbH TETRA Bremen DE AEMFU KOV 100.00 28 3) 1 3) b)
VA TECH WABAG Water Engineering (HK) Ltd. VWHONG Hong Kong CN WABADD KOV 100.00 1,281 3) 0 b)
VAI (MALAYSIA) SDN BHD VAI-MAL Kuala Lumpur MY ASIA KOV 100.00 –14 5) –53 5) b)
VAI Automation Private LTD INAPL Calcutta IN VAIG KOV 67.33 696 3) 192 3) b)
INDIA KOV 32.67 b)
VAI HP as HPAG Prague CZ VAIG KOV 91.09 1,938 3) 71 3) b)
VAI Impianti s.p.A. VAIMG Genua IT VAIMP KOV 100.00 317 3) –458 3) b)
VAI India Private LTD INDIA New Delhi IN VAIG KOV 100.00 834 3) 51 3) b)
VAI Polen Sp. zoo VAIPA Cracow PL VAIG KOV 100.00 264 3) 78 3) b)
VAI PRAHA ENGINEERING spol sro VAIPE Prague CZ VAIG KOV 100.00 268 3) 64 3) b)
VAI Seuthe GmbH VAISEU Hemer DE VAIG KOV 100.00 –2,384 –150 b)
VAICO Inc VAICO New York US VAIC KOV 100.00 0 0 b) na
VA-IFAS Personalservice GmbH & Co KG IFAS4 Leuna DE IFAS3 KOV 49.00 23 3 b)
VA-IFAS Personalservice-Beteiligungs GmbH IFAS3 Leuna DE IFAS2 KOV 100.00 26 3 b)
VAIS do Brasil Ltda. VAISBR Volta Redonda BR VAISG KOV 100.00 309 87 b)
VA-MIS Trading GmbH VAMIS Linz AT VAIS KOV 100.00 2,631 174 b)
VATECH International Private Ltd VAINDIA New Delhi IN VATI KOV 40.00 59 3) 18 3) b)
VATECH Philippines Inc. VATPHIL Makati PH VATI KOV 100.00 0 0 b)
VEA Instandhaltungsservice Beteiligungs GmbH VEAB Leuna DE VEA KOV 100.00 26 3) 0 3) b)
Venezolana de Inversiones Mineras Veinmica CA VEINMICA Caracas VE VOEDEVENCA KOV 100.00 0 0 b) na
VOEST-ALPINE ANDINA CA
VOEST-ALPINE Ankara Engineering and
VAANDINA Caracas VE VOEDEVENCA KOV 100.00 0 0 b) na
Contracting Ltd Liability Company VAANK Ankara TR VAIG KOV 95.00 0 0 b) na
VOEST-ALPINE Chile Ingenieria y Construccion S.A. MCECHIL Santiago CL EEVG KOV 99.90 544 5)
–507 5)
b)
VOEST-ALPINE Impianti srl VAIMP Bergamo IT VAIG KOV 98.00 1,033 3) 15 3) b)

Name Abbre- Registered Coun- Parent Consol- Percentage Equity as at Net result Reason Note
viation Office try Company idation holding Dec. 31, 2000 2000 for
form % TEUR TEUR cons.
VOEST-ALPINE INDUSTRIAL SERVICES (UK) Limited VAISUK London GB VAISG KOV 75.00 153 3 b)
VOEST-ALPINE INDUSTRIAL-SERVICES
VAIG KOV 25.00 b)
SOUTH AFRICA (PTY) Ltd VAISSA Meyerton ZA VAISG KOV 100.00 457 –479 b)
VOEST-ALPINE INDUSTRIES (SA) (Pty) Ltd VAISA Johannesburg ZA VAIG KOV 100.00 932 3)
112 3)
b)
VOEST-ALPINE Maintenance & Service Spolka zoo MSI Poznan PL VEA KOV 90.00 155 5) 6 5) b)
VOEST-ALPINE MCE Bolivia SRL MCEBOL La Paz BO MCECHIL KOV 98.00 64 5)
46 5)
b)
VOEST-ALPINE MCE Corporation MCEC Salisbury US VAIC KOV 100.00 864 –1,242 b)
VOEST-ALPINE MCE Mexico SA de CV MCEMEX Mexico City MX EEVG KOV 99.00 225 3) –26 3) b)
VOEST-ALPINE MCE Stahlbau Beteiligungs GmbH MCELEUB Leuna DE MCELEU KOV 100.00 26 7)
0 7)
b)
VOEST-ALPINE Singapore PTE LTD VASING Singapore SG VATI KOV 100.00 108 3)
–8 3)
b) iL
VOEST-ALPINE Technical Services (Nigeria) Ltd VATSN Warri NG VAMCEG KOV 50.00 355 7)
–143 7)
b) iL
VAISG KOV 50.00 b) iL
Wabag Wassertechnische Anlagen GmbH VWSALZ Salzburg AT WABGER KOV 100.00 –1,572 4) –953 4) b)
Xi’an Yellow River Coating Center Co. Ltd
Other companies
YRCC Xian City CN EWZK KOV 54.80 2,082 –176 b)
Alp Hydro ALPHY Chippis CH EWZK KOS 49.00 592 32 g)
Babcock Borsig Power GmbH BABCOCK Oberhausen DE AE KOS 10.00 493,018 1) 23,082 1) g)
Betriebsführungsgesellschaft Nohra mbH. NOHRA Nohra DE WABGER KOS 50.00 96 3) –6 3) g)
Business Center Marchfeld Betriebs GmbH BCM Vienna AT EEE KOS 25.00 0 0 g)
Chesapeake Heavy Machine CHM Baltimore US VASTP KOS 50.00 0 0 g)
ECS ELIN Communications Systems GmbH ECS Eisenstadt AT EEE KOS 32.35 0 0 g) iK
Electron Automation B.V. ELECTRON Breda NL SATB KOS 40.00 1,121 51 g)
ELIN Electric Industries Sdn Bhd EEIM Kuala Lumpur MY EEVG KOS 30.00 95 3) –69 3) g)
Encomech Engineering Services Ltd ENCOMECH Epsom GB VAIUK KOS 49.00 296 0 g)
Entrutech Sdn Bhd ENT Kuala Lumpur MY EEIM KOS 80.00 377 3) 607 3) g)
EEVG KOS 20.00 g)
EPE Reyrolle Malaysia ERM Kuala Lumpur MY TMH KOS 30.00 141 52 g)
Ing. Punzenberger COPA-DATA GmbH COPADATA Salzburg AT SAT KOS 30.00 160 –17 g)
Jordan Electrical Switchgear Co. Ltd. JESCO Amman JO TAD KOS 40.00 522 –142 g)
Leitungsbau GmbH LBG Linz AT EEE KOS 50.00 271 108 g)
Linzer Industriepark GmbH LIP Linz AT VAMCEG KOS 24.90 1,374 3)
–54 3)
g)
Manus Personalservice GmbH MANUS Ingolstadt DE IHE KOS 40.00 27 0 g)
Pipe-Tec Verwaltungs GmbH PIPEV Leverkusen DE DVAMCE KOS 20.00 23 4) –2 4) g)
Remoconsult Spolka zoo REMCO Poznan PL MSI KOS 45.00 1 5)
0 5)
g)
SAT Bratislava Systémy automatizacnej techniky, spol sro SATBRAT Bratislava SK SATB KOS 45.00 916 127 g)
Studiengesellschaft für Entsorgung v. Altfahrzeugen mbH EVA Stuttgart DE VAIG KOS 50.00 185 3) 3 3) g)
UE Waagner-Biro Pte Ltd UEWB Singapore SG AE KOS 45.00 549 3)
–216 3)
URALMASCH-VOEST Metallurgieanlagen
g)
ProjektierungsgesmbH VAIUM Linz AT VAI KOS 50.00 243 3)
–2 3)
g)
VA TECH ELIN Reyrolle Ltd VER Hong Kong CN TAD KOS 50.00 334 –289 g)
VOEST-ALPINE MECHATRONICS GmbH VATRON Linz AT VAI KOS 27.00 982 3) 735 3) g)
VOEST-ALPINE Nigeria Ltd VAN Lagos NG VAMCEG KOS 28.30 20 7)
2 7)
g)
VOEST-ALPINE Services (Nigeria) Ltd VATSNA Abuja NG VAISG KOS 40.00 3 0 g) na
VOEST-ALPINE STAHL AG STAHL-AG Linz AT VATB KOS 10.93 1,429,987 2)
128,923 2)
g)
Reason for consolidation Notes Remarks
a) Pursuant to IAS 27.12 – full consolidation (control) iG in foundation 1) Figures as at Sept. 30, 2000
b) Not consolidated – materiality iK in bankruptcy 2) Figures as at March 31, 2000
c) Pursuant to IAS 27.13 – excluded from consolidation iL in liquidation 3) Figures as at Dec. 31, 1999
d) Pursuant to IAS 28 – associated company – equity method iA in composition 4) Figures as at Sept. 30, 1999
e) Joint ventures – equity method na not active 5) Figures as at Dec. 31, 1998
f) Pursuant to IAS 28.8/10 and 31.35 – excluded from use of knA no significant activities 6) Figures as at Dec. 31, 1997
equity method BG Operational management company 7) Figures as at Dec. 31, 1996
g) Pursuant to IAS 25.23 – investment S Currency conversion according to the balance sheet date method
Consolidation form
KVI Full consolidation (domestic) KOS Other companies exempt from consolidation
KVA Full consolidation (foreign) KEA Equity consolidation (foreign)
KOV Affiliated companies exempt from consolidation KEI Equity consolidation (domestic) 87

88
VA TECH “Facts and Figures”
The following presentation is primarily intended for investors and financial analysts who are interested in the
development and definition of VA TECH’s key figures and ratios from 1991 to 2000 for research purposes.
Since 1998, the VA TECH Group has been using the International Accounting Standards (IAS), which in some respects
differ from the Austrian accounting regulations employed previously.
VA TECH key figures overview
IAS IAS IAS
2000 1999 1998 1997 1996 1995 1994 1993 1992 1991
Order intake EUR m 3,894 3,570 3,036 3,204 3,239 2,563 2,340 1,969 1,686 1,722
Order backlog EUR m 3,709 3,515 2,885 6,229 5,846 4,822 3,895 3,510 3,118 3,147
Sales EUR m 3,985 3,447 3,216 2,792 2,437 1,896 2,027 1,632 1,714 1,511
EBITA EUR m 125 140 - - - - - - -
EBIT EUR m 93 130 83 - - - - - - -
EBT 1) /Profit from ordinary activities 2) EUR m 42 32 43 134 122 92 82 71 67 57
Profit/loss for the period EUR m 30 -95 25 110 102 97 71 67 52 51
Cash earnings
Investments in tangible
EUR m 46 95 99 162 160 125 150 74 115 51
and intangible assets EUR m 126 112 105 73 73 48 43 40 47 -
Investments in shareholdings EUR m 153 98 224 65 29 121 6 13 11 -
Product and process innovation (PVI) EUR m 98 81 67 82 85 80 73 67 - -
Product and process innovation / Sales % 2.5 2.4 2.1 2.9 3.5 4.2 3.6 4.1 - -
Employees (average for the year) 22,150 20,609 17,684 17,986 16,665 15,683 14,502 13,256 13,544 13,340
ROS % 3.1 4.1 2.7 4.8 5.0 4.9 - - - -
ROE % 6.4 4.2 11.3 19.3 19.7 19.1 - - - -
ROCE % 6.0 3.2 5.6 12.4 12.6 13.6 - - - -
WACC % 8.4 8.4 8.8 10.2 10.2 10.2 - - - -
Average capital employed EUR m 1,926 1,650 1,406 1,098 990 962 - - - -
1) IAS 1998 - 2000
2) HGB 1991 - 1997
Stock exchange data
IAS IAS IAS
2000 1999 1998 1997 1996 1995 1994
Share capital EUR m 109 109 109 109 109 109 109
Number of shares m 15 1) 15 1) 15 15 15 15 15
Free float % 56,95 56,95 56,95 56,95 56,95 54,75 51,00
Dividend EUR m 18 2) 18 2) 36 35 33 30 26
Dividend per share EUR 1.2 2) 1.2 2) 2.4 2.3 2.2 2.0 1.7
Dividend yield (year end) % 3.8 1.8 3.2 1.7 1.8 2.2 2.2
Share price (year end) EUR 32 66 74 139 123 93 80
Market capitalisation (year end) EUR m 480 983 1,108 2,091 1,852 1,395 1,197
Total turnover, Vienna Stock Exchange EUR m 923 1,729 2,554 2,537 1,885 2,528 858
ATX weighting (year end) % 2.2 4.4 5.5 10.2 11.6 11.0 11.0
Equity per share EUR 38 38 48 39 36 33 35
P/E-Price/Earnings ratio (year end) 13.3 36.7 13.5 20.0 20.2 16.2 16.6
EPS-Earnings per share EUR 2.1 1.8 5.4 7.0 6.1 5.7 4.8
1) After a buy-back of 250,000 shares in 1999, the number of shares outstanding amounts to 14.75 m in 2000
2) Proposal to the AGM

Balance sheet
IAS IAS IAS
2000 1999 1998 1997 1996 1995 1994 1993 1992 1991
Fixed assets EUR m 1,214 1,066 816 531 495 486 467 478 381 363
Tangible assets EUR m 474 425 324 272 249 226 231 228 226 220
Current assets EUR m 2,726 3,046 2,777 2,768 2,598 2,236 2,103 1,949 1,897 2,767
Goodwill EUR m 469 350 47 - - - - - - -
Equity EUR m 576 575 716 588 545 489 530 483 360 243
Liabilities EUR m 3,326 3,494 2,834 2,719 2,554 2,259 2,052 1,947 1,921 2,891
Short-term liabilities EUR m 2,272 2,413 2,137 - - - - - - -
Long-term liabilities EUR m 1,054 1,081 697 - - - - - - -
Balance sheet total EUR m 3,940 4,112 3,592 3,307 3,099 2,748 2,582 2,430 2,281 3,134
Asset cover % 75 54 88 111 110 100 113 101 95 67
Tangible asset intensity % 12 10 9 8 8 8 9 9 10 7
Equity ratio % 15 14 20 18 18 18 21 20 16 8
Net current assets (operative) EUR m 75 25 -176 -469 -482 -337 - - - -
Gross liquidity 1) EUR m 788 1,294 1,399 1,561 1,549 1,303 1,361 1,240 1,016 1,011
Interest – bearing debt capital 1) EUR m 235 414 457 374 307 338 223 246 323 358
Net liquidity 1) EUR m 553 880 942 1,187 1,242 965 1,138 994 693 653
Gearing % -96 -153 -132 -202 -228 -197 -215 -206 -193 -269
1) From 1999, maturity < 1 year
Profit and loss statement
IAS IAS IAS
2000 1999 1998 1997 1996 1995 1994 1993 1992 1991
Sales EUR m 3,985 3,447 3,216 2,792 2,437 1,896 2,027 1,632 1,714 1,511
Sales plus changes in inventory EUR m 3,884 3,402 3,263 3,192 2,757 2,248 1,975 1,640 1,730 1,758
Other operating income EUR m 254 190 140 224 234 178 182 201 185 122
Personnel expenses
Expenses for materials
EUR m -1,109 -981 -864 -900 -850 -772 -685 -609 -604 -552
and services received EUR m -2,151 -1,790 -1,801 -1,825 -1,482 -1,103 -930 -740 -820 -895
Depreciation and amortisation EUR m -110 -80 -68 -58 -60 -55 -56 -46 -43 -37
(thereof goodwill amortisation) EUR m -32 -10 -3 - - - - - - -
Other operating expenses EUR m -675 -612 -587 -608 -571 -483 -473 -459 -465 -404
EBIT EUR m 93 130 83 - - - - - - -
Financial result EUR m -51 -98 -40 110 93 80 68 83 84 64
EBT/Profit from ordinary activities EUR m 42 32 43 134 121 92 82 71 67 57
Extraordinary result EUR m -6 - - -17 0 10 -6 5 -5 2
Taxes EUR m -9 -8 42 -7 -19 -5 -5 -9 -11 -9
Result from discontinuing operations EUR m - -122 -57 - - - - - - -
Minority interests EUR m 4 3 -3 - - - - - - -
Profit/loss for the period EUR m 30 -95 25 110 102 97 71 67 52 51
Sales per employee
Personnel expenses in % of sales
TEUR 180 167 182 155 146 121 140 123 127 113
plus changes in inventory % 29 29 27 28 31 34 35 37 35 31
Material expenses in % of sales plus changes in inventory % 55 53 55 57 54 49 47 45 47 51
Cash flow statement
IAS IAS IAS
2000 1999 1998 1997 1996 1995 1994 1993 1992 1991
Cash earnings EUR m 46 95 99 162 160 125 150 74 115 51
Cash flow from operating activities EUR m -153 -48 -70 95 321 125 77 363 120 79
Cash flow from investing activities EUR m -109 -241 -253 -125 -58 -120 -51 -120 -65 -38
Free cash flow EUR m -262 -289 -323 -30 263 5 26 243 55 41
Cash flow from financing activities EUR m -84 384 82 29 -37 40 -7 -31 -56 -11
Net increase/decrease in liquid funds EUR m -346 95 -241 -2 226 45 21 212 -1 31
89

90
VA TECH “Facts and Figures”
Metallurgy
IAS IAS IAS
2000 1999 1998 1997 1996 1995 1994 1993 1992 1991
Order intake EUR m 1,080 982 891 920 1,106 693 646 446 385 596
Order backlog EUR m 1,196 1,153 990 2,425 2,142 1,647 1,417 1,283 1,243 1,606
Sales EUR m 1,055 858 1,247 631 666 409 445 348 525 470
EBITA EUR m -26 50 - - - - - - - -
EBIT EUR m -36 50 87 - - - - - - -
Profit from ordinary activities
Investments in tangible
EUR m - - - 58 46 39 29 35 - -
and intangible assets EUR m 19 13 15 14 23 8 - - - -
Investments in shareholdings EUR m 17 61 4 1 12 1 - - - -
Product and process innovation EUR m 40 32 28 35 39 36 29 21 - -
Employees (average for the year) 4,125 3,122 3,302 3,107 3,003 2,030 2,090 2,118 2,307 2,798
ROS % -2.5 5.9 7.0 9.2 7.0 9.5 6.4 10.0 - -
ROCE % -5.4 3.2 11.8 16.5 12.9 17.2 - - - -
WACC % 8.4 8.4 8.8 10.4 10.4 10.4 - - - -
Average Capital Employed EUR m 790 680 654 413 335 299 - - - -
Hydro Power Generation
IAS IAS IAS
2000 1999 1998 1997 1996 1995 1994 1993 1992 1991
Order intake EUR m 637 542 - - - - - - - -
Order backlog EUR m 978 827 - - - - - - - -
Sales EUR m 738 436 - - - - - - - -
EBITA EUR m 38 30 - - - - - - - -
EBIT
Investments in tangible
EUR m 33 30 - - - - - - - -
and intangible assets EUR m 12 21 - - - - - - - -
Investments in shareholdings EUR m 130 6 - - - - - - - -
Product and process innovation EUR m 14 10 - - - - - - - -
Employees (average for the year) 3,011 1,603 - - - - - - - -
ROS % 5.1 6.9 - - - - - - - -
ROCE % 8.0 - - - - - - - - -
WACC % 8.4 - - - - - - - - -
Average Capital Employed EUR m 265 - - - - - - - - -
Power Transmission and Distribution
IAS IAS IAS
2000 1999 1998 1997 1996 1995 1994 1993 1992 1991
Order intake EUR m 661 724 - - - - - - - -
Order backlog EUR m 589 663 - - - - - - - -
Sales EUR m 752 729 - - - - - - - -
EBITA EUR m 51 44 - - - - - - - -
EBIT
Investments in tangible
EUR m 38 37 - - - - - - - -
and intangible assets EUR m 55 59 - - - - - - - -
Investments in shareholdings EUR m 1 3 - - - - - - - -
Product and process innovation EUR m 24 23 - - - - - - - -
Employees (average for the year) 4,899 5,330 - - - - - - - -
ROS % 6.8 6.0 - - - - - - - -
ROCE % 7.0 - - - - - - - - -
WACC % 8.4 - - - - - - - - -
Average Capital Employed EUR m 428 - - - - - - - - -

Water Systems
IAS IAS IAS
2000 1999 1998 1997 1996 1995 1994 1993 1992 1991
Order intake EUR m 325 249 - - - - - - - -
Order backlog EUR m 368 330 - - - - - - - -
Sales EUR m 317 253 - - - - - - - -
EBITA EUR m 12 -12 - - - - - - - -
EBIT
Investments in tangible
EUR m 12 -14 - - - - - - - -
and intangible assets EUR m 3 4 - - - - - - - -
Investments in shareholdings EUR m 2 22 - - - - - - - -
Product and process innovation EUR m 4 3 - - - - - - - -
Employees (average for the year) 805 684 - - - - - - - -
ROS % 3.8 -4.9 - - - - - - - -
ROCE % 7.4 -21.7 - - - - - - - -
WACC % 8.4 8.4 - - - - - - - -
Average Capital Employed EUR m 85 90 - - - - - - - -
Industrial Services
IAS IAS IAS
2000 1999 1998 1997 1996 1995 1994 1993 1992 1991
Order intake EUR m 1,339 1,239 1,334 929 1,002 826 661 594 632 614
Order backlog EUR m 691 674 736 781 809 669 504 535 497 509
Sales EUR m 1,307 1,311 1,269 972 849 810 711 632 653 596
EBITA EUR m 59 56 - - - - - - -
EBIT EUR m 57 54 -11 - - - - - - -
Profit from ordinary activities
Investments in tangible
EUR m - - - 30 37 9 16 11 - -
and intangible assets EUR m 35 36 55 21 18 19 - - - -
Investments in shareholdings EUR m 4 12 16 45 2 27 - - - -
Product and process innovation EUR m 15 13 12 11 9 13 18 16 - -
Employees (average for the year) 9,141 9,716 10,326 8,935 8,225 8,175 7,026 5,989 6,291 6,391
ROS % 4.5 4.3 -0.7 3.0 4.4 1.1 2.3 1.8 - -
ROCE % 11 10.1 -1.4 5.8 13.0 9.3 - - - -
WACC % 8.4 8.4 8.8 10.4 10.4 10.4 - - - -
Average Capital Employed EUR m 427 437 455 354 333 323 - - - -
Prior to 1999, the Hydro Power Generation, Power Transmission and Distribution and Water Systems Divisions were all
part of the Power and Water Group Area.
IAS
1998 1998 1997 1996 1995 1994 1993 1992 1991
Order intake EUR m 923 1,148 1,355 1,132 1,043 1,034 929 669 512
Order backlog EUR m 1,206 2,675 3,023 2,894 2,506 1,975 1,693 1,378 1,032
Sales EUR m 831 1,145 1,188 922 676 871 652 537 445
EBIT EUR m 27 - - - - - - - -
Profit from ordinary activities
Investments in tangible
EUR m - 7 46 38 44 37 25 - -
and intangible assets EUR m 36 41 38 32 21 - - - -
Investments in shareholdings EUR m 200 202 19 15 93 - - - -
Product and process innovation EUR m 28 35 36 37 31 26 20 - -
Employees (average for the year) 3,906 5,883 5,809 5,330 5,384 5,284 5,066 4,941 4,146
ROS % 3.4 0.6 3.8 4.1 6.6 4.2 3.9 - -
ROCE % 2.0 -2.6 14.4 12.0 14.7 - - - -
WACC % 8.8 8.8 10.4 10.4 10.4 - - - -
Average Capital Employed EUR m 460 382 331 322 339 - - - -
91

92
VA TECH “Facts and Figures”
Structural analyses
IAS IAS IAS
2000 1999 1998 1997 1996 1995 1994 1993 1992 1991
Order intake by division EUR m 3,894 3,570 3,036 3,204 3,239 2,563 2,340 1,969 1,686 1,722
Metallurgy % 28 27 29 29 34 27 25 22 23 34
Hydro Power Generation % 16 15 - - - - - - - -
Power Transmission and Distribution % 17 20 - - - - - - - -
Water Systems % 8 7 - - - - - - - -
Industrial Services % 34 35 44 29 31 32 30 29 36 35
Other VA TECH and consolidation % -3 -4 - - - - - - - -
Order intake by region
Western Europe % 60 55 56 50 52 55 55 62 59 57
Central/Eastern Europe % 7 7 15 5 9 7 7 9 14 8
Near/Middle East, Africa % 6 5 6 17 24 4 11 16 10 16
Asia/Pacific % 8 12 6 22 11 27 22 9 15 16
North and South America % 19 21 17 6 4 7 5 4 2 3
Order intake
Metallurgy by region EUR m 1,080 982 891 920 1,106 693 646 446 385 596
Western Europe % 48 28 32 17 14 16 - - - -
Central/Eastern Europe % 8 5 8 5 9 8 - - - -
Near/Middle East, Africa % 7 9 9 47 65 7 - - - -
Asia/Pacific % 10 7 11 16 4 53 - - - -
North and South America % 27 51 40 15 8 16 - - - -
Order intake
Hydro Power Generation by region EUR m 637 542 - - - - - - - -
Western Europe % 40 40 - - - - - - - -
Central/Eastern Europe % 3 2 - - - - - - - -
Near/Middle East, Africa % 9 4 - - - - - - - -
Asia/Pacific % 9 38 - - - - - - - -
North and South America % 39 16 - - - - - - - -
Order intake Power Transmission
and Distribution by region EUR m 661 724 - - - - - - - -
Western Europe % 54 54 - - - - - - - -
Central/Eastern Europe % 1 3 - - - - - - - -
Near/Middle East, Africa % 6 7 - - - - - - - -
Asia/Pacific % 12 14 - - - - - - - -
North and South America % 27 22 - - - - - - - -
Order intake
Water Systems by region EUR m 325 249 - - - - - - - -
Western Europe % 56 74 - - - - - - - -
Central/Eastern Europe % 5 9 - - - - - - - -
Near/Middle East, Africa % 22 7 - - - - - - - -
Asia/Pacific % 17 9 - - - - - - - -
North and South America % 0 1 - - - - - - - -
Order intake
Industrial Services by region EUR m 1,339 1,239 1,334 929 1,002 826 661 594 632 614
Western Europe % 86 83 79 89 92 92 - - - -
Central/Eastern Europe % 10 12 14 5 1 4 - - - -
Near/Middle East, Africa % 1 2 2 1 2 2 - - - -
Asia/Pacific % 2 2 3 3 5 2 - - - -
North and South America % 1 1 2 2 0 0 - - - -

Structural analyses
IAS IAS IAS
2000 1999 1998 1997 1996 1995 1994 1993 1992 1991
Order backlog by division EUR m 3,709 3,515 2,885 6,229 5,846 4,822 3,895 3,510 3,118 3,147
Metallurgy % 32 33 34 39 37 34 36 37 40 51
Hydro Power Generation % 26 24 - - - - - - - -
Power Transmission and Distribution % 16 19 - - - - - - - -
Water Systems % 10 9 - - - - - - - -
Industrial Services % 19 19 26 13 14 14 13 15 16 16
Other VA TECH and consolidation % -3 -4 - - - - - - - -
Order backlog by region
Western Europe % 53 45 46 36 40 43 43 46 44 42
Central/Eastern Europe % 6 10 13 9 12 12 15 16 14 14
Near/Middle East, Africa % 10 11 16 21 17 10 13 14 17 16
Asia/Pacific % 11 13 13 29 28 30 24 20 20 23
North and South America % 20 21 12 4 3 5 5 4 5 5
Sales by division EUR m 3,985 3,447 3,216 2,792 2,437 1,896 2,027 1,632 1,714 1,511
Metallurgy % 26 25 39 23 27 21 22 21 31 31
Hydro Power Generation % 19 13 - - - - - - - -
Power Transmission and Distribution % 19 21 - - - - - - - -
Water Systems % 8 7 - - - - - - - -
Industrial Services % 33 38 39 35 35 43 35 39 38 39
Other VA TECH and consolidation % -5 -4 - - - - - - - -
Sales by region
Western Europe % 56 56 48 59 65 65 61 62 66 58
Central/Eastern Europe % 9 9 7 10 8 10 6 5 8 14
Near/Middle East, Africa % 7 12 21 8 10 9 12 19 15 12
Asia/Pacific % 9 11 13 17 9 10 15 10 8 10
North and South America % 19 12 11 5 7 5 6 4 3 6
Employees by division 22,150 20,609 17,684 17,986 16,665 15,683 14,502 13,256 13,544 13,340
Metallurgy % 19 15 19 17 18 13 14 16 17 21
Hydro Power Generation % 13 8 - - - - - - - -
Power Transmission and Distribution % 22 26 - - - - - - - -
Water Systems % 4 3 - - - - - - - -
Industrial Services % 41 47 58 50 49 52 48 45 46 48
Other VA TECH and consolidation % 1 1 - - - - - - - -
93

VA TECH ’99
56 94
Definitions
• Asset cover
Gives the equity figure plus social capital as a percentage of
fixed assets.
• Asset intensity
Gives assets as a percentage of the balance sheet total.
• Cash earnings
Earnings before taxes
+/- Losses/profits from the sale of fixed assets
+/- Depreciation/appreciation of fixed assets
+/- Increase/decrease in long-term provisions
- Taxes paid
= Cash earnings
• Free cash flow
This shows the cash generation, including the change in
working capital and investments in tangible/intangible assets
and shareholdings.
Cash earnings
+ Change in working capital
= Cash flow from operating activities
+ Cash flow from investing activities
= Free cash flow
• Dividend yield
Shows the dividend of the respective year in relation to the
year end share price.
• Earnings per share
This figure is calculated on the basis of the profit/loss for the
period divided by the average number of shares. In accordance
with IAS, the result from discontinuing operations can
be added to the net result for the calculation of the earnings
per share. Analogously, in the years in which the HGB was
employed, an ÖVFA (Austrian Association of Financial
Analysts and Investment Advisors) directive was used under
which the earnings per share was calculated on the basis of
the Group net result, less minority interests and extraordinary
results.
• EBIT (Earnings before interest and taxes)
Corresponds with the operating result before the
inclusion of the financial result and taxes, taking into
account the interest contained in sales derived from the
balance of advance payments received minus the advance and
partial payments made.
• EBITA
Earnings before interest; taxes and goodwill amortisation
• EBT (Earnings before taxes)
The pre-tax result (largely corresponds with the item “Profit
from ordinary activities” contained in the Austrian accounting
regulations (HGB) employed prior to 1998).
• Employees
All employees in a contractual relationship with a VA TECH
company within the scope of consolidation (excluding
apprentices, leasing personnel, but including temporary
absentees, e.g. persons on maternity leave, military
conscripts, etc.).
• Equity ratio
Gives equity as a percentage of the balance sheet total.
• Financial result
Mainly comprises the consolidated interest and investment
results. From 1998 onwards, the values are only partially
comparable, as, in accordance with the IAS, the interest from
the balance derived from advance payments received and advance
and partial payments made is reported under sales.
• Gearing
Corresponds with the ratio of net liquidity to equity.
• Goodwill
Under the Austrian accounting regulations (HGB), goodwill
from acquisitions is netted against equity, under the IAS, it is
capitalised.
• Liquidity
(from 1999 maturity < 1 year)
Cash and cash equivalents (short-term)
+ Other interest bearing receivables (short-term)
= Gross liquidity
- Interest bearing liabilities
liabilities to banks (short-term)
other interest bearing liabilities (short-term)
= Net liquidity
• Minority interests
Share of result falling to minority shareholders. Should the
value be positive, any losses from a jointly owned company
will be credited on a pro rata basis.
• Net current assets (operative)
This shows the balance from asset and loan capital items
outside the investment and financing sectors, which can be
controlled by operative measures.
• Order backlog
The backlog at the beginning of the period under review, plus
the new order intake and minus the orders reported as sales.
The order backlog reported according to IAS is lower than
that under the HGB due to the different accounting method.
According to the IAS, orders are accounted for in accordance
with the progress of the work (percentage of completion).
Under the HGB, orders are first cleared following their
conclusion (final completion method). Therefore, orders under
completion are reported entirely as order backlog.
• Order intake
All orders which were legally concluded during the respective
period under review and have also come into effect.
The IAS evaluation is basically similar to the Austrian accounting
regulations.
• Price/earnings ratio
The year-end share price in ratio to the earnings per share.
• Product and process innovation
Incorporates all expenses for innovations derived from research
and development in a narrow sense, up to the market
launch of new products, processes and plants.

• Profit/loss for the period
Corresponds with the net Group result and under the IAS
contains the minority interests.
• Result from discontinuing operations
Income and expenses from operations and partial operations,
which due to closure or sale are no longer part of the Group.
• ROCE (Return on Capital Employed)
Measures business profitability in relation to the capital employed
during the respective financial year.
ROCE =
Net operating profit less adjusted taxes
Average capital employed
Net operating profit less adjusted taxes (NOPLAT)
EBIT (Earnings before interest and taxes)
+ Goodwill amortisation
+ Financial result
+ Interest expenses on interest-bearing debt
- Adjusted taxes
= Net operating profit less adjusted taxes
Average capital employed
Tangible assets
+ Intangible assets
+ Historical goodwill
+ Financial assets
+ Net current assets (operative)
+ Other net current assets
+ Gross liquidity
- Assets from discontinuing operations
= Capital employed
WACC calculation
Risk premium
for shares 1)
4.5%
Beta-factor 2)
Group
1.2
Cost of debt
capital
5.7%
Income tax
quota - Austria
1-0.34
X
X
Business
risk premium
5.4%
Risk free
interest rate
5.0%
+
Cost of equity
10.4%
Cost of debt
capital after
taxes
3.8%
• ROE (Return on Equity)
Measures the profitability of a company in ratio to average equity.
ROE = profit/loss for the period (prior to the result from discontinuing
operations) x 100/average equity
• ROS (Return on Sales)
Shows the operative profitability of a company
ROS = EBITA x 100/sales
• Sales
In accordance with the percentage of completion method,
under the IAS order clearing takes place in line with the respective
degree of completion. Under the HGB, sales contained
the orders cleared during the period under review (final
completion method).
From 1998, interest was calculated from the balance of advance
payments received minus the advance and partial payments
made (calculated rate of interest of 4% in 2000).
• WACC (Weighted Average Cost of Capital)
The WACC is a numerical benchmark for the weighted costs
of the capital employed in a company.
The VA TECH Group capital costs for 2000 amount to 8.4%.
Equity/
Total capital 3)
X
70%
=
Debt/
Total capital 3)
30%
Weighted cost
of equity
7.3%
Weighted cost
of debt
1.1%
1) Risk premium for shares: percentage bonus for higher anticipated share yields as opposed to fixed interest securities.
2) Beta factor: a benchmark figure for the specific business risk.
3) Weighted capital costs, which derive from the ratio of equity at market value as well as interest-bearing debt capital to total capital.
X
=
+
WACC
8.4%
VA TECH ’99
57 95

VA TECH ’99
58 96
Addresses
VA Technologie AG
Lunzerstrasse 64
A-4031 Linz
VOEST-ALPINE Industrieanlagenbau GmbH & Co
Turmstrasse 44, P.O. Box 4
A-4031 Linz
Tel.: (+43/732) 6592-8501
Fax: (+43/732) 6980-8632
E-Mail: contact@vai.at
VA TECH Hydro GmbH & Co
Penzinger Strasse 76
A-1141 Vienna
Tel.: (+43/1) 89100-2053
Fax: (+43/1) 89100-196
E-Mail: contact@vatech-hydro.com
VA TECH Transmission and
Distribution GmbH & Co
Penzinger Strasse 76
A-1141 Vienna
Tel.: (+43/1) 89100-2053
Fax: (+43/1) 89100-196
E-Mail: contact@vatech-td.com
VA TECH WABAG GmbH
Siemensstrasse 89
A-1210 Vienna
Tel.: (+43/1) 25105-4610
Fax: (+43/1) 25105-136
E-Mail: contact@vatech.wabag.com
VA TECH VOEST MCE GmbH & Co
Lunzerstrasse 78, P.O. Box 36
A-4031 Linz
Tel.: (+43/732) 6987-8014
Fax: (+43/732) 6980-4738
E-Mail: contact@vamce.co.at
Penzinger Strasse 76
A-1140 Vienna
Contact:
Call Center: Tel.: (+43/732) 6986-9999 Fax: (+43/732) 6980-3416 E-Mail: contact@vatech.at
Communications and
Investor Relations: Tel.: (+43/732) 6986-9222 Fax: (+43/732) 6980-3416 E-Mail: contact@vatech.at
HRD: Tel.: (+43/732) 6986-4801 Fax: (+43/732) 6980-5696 E-Mail: personal@vatech.at
Mergers and Acquisitions: Tel.: (+43/1) 89118-4180 Fax: (+43/1) 89100-4103 E-Mail: m&a@vatech.at
VA TECH ELIN EBG GmbH
Penzinger Strasse 76
A-1140 Vienna
Tel.: (+43/1) 89990-4017
Fax: (+43/1) 89100-2373
E-Mail: contact@elinebg.at
VA TECH ELIN EBG GmbH
Krausstrasse 1-7
A-4021 Linz
Tel.: (+43/732) 6939-2440
Fax: (+43/732) 6939-2318
E-Mail: contact@elinebg.at
applied international
informatics AG
Handelskai 388
A-1020 Vienna
Tel.: (+43/1) 72709-240
Fax: (+43/1) 72709-15
E-Mail: marketing@aiinformatics.com
VA TECH International GmbH
Lunzerstrasse 64, P.O. Box 9
A-4031 Linz
Tel.: (+43/732) 6986-3153
Fax: (+43/732) 6980-3428
E-Mail: contact@vat-i.co.at
VA TECH FINANCE GmbH
Penzinger Strasse 76
A-1140 Vienna
Tel.: (+43/1) 89118-4130
Fax: (+43/1) 8925481
E-Mail: lindnerw@finance.vatech.co.at

VA TECH-
Securities Identification Numbers:
ISIN: AT 0000 937453
ADR-ISIN: US 91819 P 1049
(ISIN: International Securities Identification Number)
VA Technologie AG
Communications and Investor Relations
Wolfgang Schwaiger
Lunzerstrasse 64
A-4031 Linz
Tel.: (+43/732)6986-9222
Fax: (+43/732)6980-3416
E-Mail: contact@vatech.at
Internet Hompage: http://www.vatech.at
Dates for 2001
• Results
Annual Report 2000 March 22, 2001
Quarter 1, 2001 May 17, 2001
Quarters 1-2. 2001 August 30, 2001
Quarters 1-3, 2001 November 22, 2001
• Annual General Meeting April 25, 2001
• Dividend ex-date May 2, 2001
• Dividend payment date May 7, 2001
• VA TECH Open 2001 November 2001
Imprint
Publisher and responsible for the contents:
VA Technologie AG
Design: Schrangl & Partner, Linz
Printing: Estermann Druck, Ried. i. I.
VA TECH ’99
59

VA Technologie AG
Communications and Investor Relations
A-4031 Linz, Lunzerstrasse 64
Tel.: (+43/732) 6986-9222
Fax: (+43/732) 6980-3416
E-Mail: contact@vatech.at
www.vatech.at