Presentation material from Finpro Growth Market seminar in Helsinki October 23 2012.

1. Rohkeasti
kasvumarkkinoille
Kasvumarkkinat
- mahdollisuus vai pakko?
Metso Oyj
Jukka Seppälä

2. Metso in a nutshell
Metso is a global supplier of technology and services to
customers in the process industries, including mining,
construction, pulp and paper, power, and oil and gas. Our
30,000 professionals based in over 50 countries deliver
sustainability and profitability to customers worldwide.
• 2011 net sales EUR 6.6 billion
• Shares listed on NASDAQ OMX Helsinki Ltd.
Net sales and profitability Personnel by area
5%
EUR million %
17% 30%
7 000 14
6 000 12 10%
5 000 10 10%
13%
4 000 8 15%
3 000 6 Finland 30%
Other Nordic countries 10%
2 000 4
Other European countries 15%
1 000 2
North America 13%
0 0 South and Central America 10%
2007 2008 2009 2010 2011
Asia-Pacific 17%
Net sales EBITA %* Africa and Middle East 5%
* before non-recurring items.
2 © Metso

3. Metso businesses
Mining and Construction Automation Pulp, Paper and Power
Products: Rock crushers, Products: automation systems Products: pulp, paper and
screens, conveyors, grinding including analyzers, measure- power industry processes,
mills, separation equipment, ment and laboratory systems , machinery, equipment,
slurry-handling equipment, Control valves, automated services as well as paper
pyro processing solutions, bulk on-off valves, safety machine clothing and filter
materials handling equipment, valves and positioners fabrics.
wear products and mill linings
Customers: Energy, oil & gas, Customers: Pulp, paper
Customers: Quarries, mining chemical & petrochemical, and board industry, power
and construction industry power generation, pulp and producers
paper industry
3 © Metso

4. There are four megatrends shaping the
world over the long term
Globalizing economy
• Capex investment - growth countries
• Services - developed world
• New industry dynamics
Rise of emerging economies
• Winning in growth markets essential for Metso’s competitiveness
• Demand for localized low-cost offerings
Demographic changes
• Aging workforce in developed countries
• Growth country talent
Sustainability and climate change
• Alternative energy & recycling
• Environmental solutions
• Stricter environmental regulations
4 © Metso

5. Implementing our strategy through the must-wins to make
Metso grow and become more competitive
We continue to drive our key business initiatives under each must-win
Services Achieve growth in services market share and profitability
1 locally by leveraging installed base
CUSTOMER & MARKET
Growth Strengthen our local presence and growth, particularly in
FACING
2 countries the BRIC countries and other growth countries
Technology Maintain our technology leadership with cost efficient and
3 environmentally sustainable product and process solutions,
and develop our mid-market offering
Operating Secure the quality of operations and deliveries (Supply
4 model Chain Excellence) globally by improving cost efficiency
ENABLING
People Develop a working environment that enables our business
5 success
5 © Metso

6. Metso´s Top 10 countries in 2011
Orders received, EUR million Personnel
• Brazil 1,292 • Finland 9,222
• USA 1,167 • China 3,199
• China 642 • USA 3,049
• Sweden 493 • Sweden 2,758
• Finland 417 • Brazil 2,233
• Australia 399 • South Africa 1,303
• Germany 341 • Germany 1,271
• Russia 329 • India 1,060
• Canada 280 • Canada 796
• Chile 244 • France 732
6 © Metso Date Author Title

7. Our global presence
Developed markets Share of Metso’s net sales, %
Emerging markets Net sales, EUR million (2001) Number of employees and % of total personnel, 2001
Metso’s operating countries Number of employees and % of total personnel, 2011
Net sales, EUR million (2011)
7 © Metso

8. Arguments for expanding business operations
to emerging markets
• Improved capability to response to customers´needs - lead time and
substance
• Grow where the growth is
• Credibility through local commitment
• Credibility through international presence and references
• Cost - labor, materials, components and services
• Developing a global supplier network by being a part of it
• Sharing risks in your business portfolio – products/services,
customers, markets – decreasing volatility
• Gaining experience and knowledge
• Improving attractiveness as an employer – having best talent to work
for you
8 © Metso Date Author Title

9. CONFIDENTIAL
The new global reality
Preparing for a two-speed world - emerging vs. developed world
Projected annual GDP growth, 2010-2014 (%)* Size of estimated 2009 GDP
High growth Low growth
12
51% of new orders
China * Five year compound annual growth in gross
in 2011 domestic product on the basis of purchasing
power parity (PPP) valuations at current rates.
10
** Average cost of manufacturing labor per hour
India Services 49% of (pay and non-pay costs).
net sales 2011
Vietnam
8 Indonesia
Thailand
Malaysia
Mexico
6 Australia
Philippines
Brazil United Kingdom
Sweden
Russia Canada The Netherlands
Czech Republic United
4 States Belgium
Poland Japan France
Spain Italy Swizerland Germany
0 10 20 30 40 50
Manufacturing labor cost per hour ($)**
9 © Metso Source: BCG “Competing for advantage”

10. CONFIDENTIAL
We must manage volatility to long-term
sustainable value creation
Expected Overall
Development Trend –
Basis for planning
Our Challenge –
Sustainable Value Creation
Market Market
Development Fluctuation
Time
10 © Metso

11. Our net sales in 2011 by type of business and
markets
Net sales by type* Net sales by market area
5% 6%
6%
20%
25%
45% 23%
35%
17%
18%
Services business 45% Finland 6% (5%)
Project business 35% Other Nordic countries 6% (7%)
Product business 20% Other European countries 23% (24%)
North America 18% (17%)
South and Central America 17% (14%)
* Management estimate Asia-Pacific 25% (28%)
Africa and Middle East 5% (5%)
(previous year in brackets)
11 © Metso

12. Boards and Tissue consumption continue to grow – P&W
flattening alarmingly, while newsprint continues to decline
World consumption of newsprint, tissue, p&w & boards 1980-2015F
12 © Metso Source: Pöyry 2011 data

13. Global mining capital expenditure to increase
at ~7 % CAGR to 243 Bn$ in 2020
Iron ore, Gold, Copper and Base
metals Capex (Bn$)
+26 Bn$
19
12 27
15
25 35
23 20
2010 2020
Iron ore Gold Copper Base metals
© Metso

14. INTERNAL
Prices of key metals near 2008 highs
LME metals composite index Iron ore and copper prices
Gold prices and stocks Nickel prices and stocks
14 © Metso

15. Market specific opportunities – example Brazil
Forecasted industrial output
Unit 2010 2015 Long-term growth rate 2010-2015
Nickel Thousand tons 52.5 129.9 147,4 %
Bauxite Thousand tons 23.2 37.3 60,7 %
Iron ore Million metric tons 370.0 591.9 59,9 %
Zinc Thousand tons 175.0 221.1 26,3 %
Tin Thousand tons 8.4 8.9 6,0 %
Cement Thousand tons 59,200 86,700 46,4 %
Aggregates Thousand tons 451,000 583,000 29,2 %
Pulp Thousand tons 10,509 17,025 62,0 %
Paper Thousand tons 10,093 11,307 12,0 %
Power generation Gigawatts 106 122 15,1 %
Oil Million barrels/ day 2.2 2.9 31,8 %
Biofuels Million barrels/ day 0.6 0.9 50,0 %
15 © Metso Sources: BMI, IBRAM, Bracelpa, EIA

16. Strong commitment to China for almost 80
years
• First deliveries to China by Metso
Paper’s predecessors in the 1930’s.
• Over 50 paper and board and tissue
machines delivered in past 10 years
with a total capacity yearly more than
15 million tons
• Close to 40% of paper and board
production in China are made from
Metso’s deliveries.
• Hundreds of machines and processes
for the pulping industry.
• Witness to long friendship
-Metso’s second paper machine delivery to
China took place in 1956 to Guangzhou Paper
- Ceremonial signing of Guangzhou Paper PM 9 in
September 2006
16 © Metso