Update on financials. More information at www.metso.com/CMD or www.metso.com/investors.

1. Building on a strong financial
foundation
Harri Nikunen
CFO
November 27, 2013
London, UK

2. 1
Main financials
2
Balance sheet,
cash flow & financing
3
Other topics
Financial information for Metso’s continuing
operations is unaudited and illustrative.
Accounting principles are presented in a stock
exchange release published on September 23,
2013

3. Metso by business type in 2012
EUR million
• Project business operates with a
216
flexible business model and a light
balance sheet
• Equipment and product business ties
1,483
2,072
up more capital employed, but good
margins secure good returns
• Services business is central to
building strong customer relationships
and offers good profitability and
returns
728
Service business
Equipment and product business
Project business
Valmet Automotive
3
© Metso
Capital Markets Day 2013

4. Big mining orders have been missing since 2012
Orders received for continuing operations,12-month rolling
EUR Million
Mining orders at
an all time high
6,000
5,000
4,000
3,000
2,000
Services
4
© Metso
Capital Markets Day 2013
Capital equipment
08/13
06/13
04/13
02/13
12/12
10/12
08/12
06/12
04/12
02/12
12/11
10/11
08/11
06/11
04/11
02/11
12/10
10/10
08/10
06/10
04/10
02/10
0
12/09
1,000

5. Orders by quarter
Continuing operations
EUR million
2,000
1,800
1 533
1,600
1,400
1 185
1,200
1,000
800
650
778
842
871
1 245
1 125
1 151
1 011
904
874
1 025
1 078
1 025
869
564
570
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
2009
600
579
2009
2009
2009
2010
2010
2010
2010
2011
2011
2011
2011
2012
2012
2012
2012
2013
2013
2013
400
200
0
Services orders received, ext.
5
© Metso
Capital Markets Day 2013
Capital orders received, ext.

6. Annual orders received
Continuing operations
EUR million
2009
2010
2011
2012
1-9/2013
Mining and Construction
capital
737
1,313
2,103
1,658
905
Automation capital
270
337
407
404
339
1,035
1,322
1,604
1,771
1,255
265
309
352
382
326
56
84
281
216
148
2,363
3,365
4,747
4,432
2,972
344
745
1,416
1,102
519
Mining and Construction
services
Automation services
Valmet Automotive
Total
Mining equipment
6
© Metso
Capital Markets Day 2013

7. Healthy order backlog of EUR 2.1 billion –
services backlog higher than ever
EUR million
EUR million, September 2013
3,000
2,500
2,500
2,000
2,000
1,500
1,500
1,000
1,000
500
500
0
2009
2010
2011
Mining and Construction
7
Around 45%
of deliveries
for 2013
consist of
services
orders
© Metso
Capital Markets Day 2013
2012
Automation
2013
0
Deliveries in 2013
Deliveries after 2013

8. Net sales for continuing operations
Rolling 12 months
EUR Million
5,000
4,500
4,000
3,500
3,000
2,500
2,000
1,500
1,000
Services
8
© Metso
Capital Markets Day 2013
Capital equipment
08/13
06/13
04/13
02/13
12/12
10/12
08/12
06/12
04/12
02/12
12/11
10/11
08/11
06/11
04/11
02/11
12/10
10/10
08/10
06/10
04/10
02/10
0
12/09
500

9. Profit & loss statement
Continuing operations
EUR million
2012
1-9/2013
Net sales
4,499
2,989
Operating profit
463
299
Net financial income and expenses
-59
-43
Profit before taxes
404
256
Amortization of intangible assets
-20
-16
Depreciation of tangible assets
-57
-46
-11.9
0
0
-1
Other NRE
-0,4
-20.7
Operating profit
463
299
10.3%
10.0%
EBITA, before non-recurring items
495.3
336.7
EBITA-%, before non-recurring items
11.0%
11.3%
540
361
12.0%
12.1%
Non-recurring items
Capacity adjustment expenses
Cost related to demerger process
Operating profit -%
EBITDA
EBITDA-%
9
© Metso
Capital Markets Day 2013

10. EBITA before NRE
Continuing operations
%
EUR Million
5,000
11.0
11.2
11.3
4,500
10
4,000
3,500
8
3,000
2,500
6
2,000
4
1,500
1,000
2
500
0
2012
Net sales
10
© Metso
12
Capital Markets Day 2013
Q2 / 2013
Q3 / 2013
EBITA % before non-recurring items
0

11. Return on capital employed targeted to exceed
30% (excl. impact of major acquisitions)
Continuing operations
%
19.5
19.2
19
18.5
18
17.6
17.5
16.9
17
16.5
16
15.5
11
2012
© Metso
Capital Markets Day 2013
1-6/2013
1-9/2013

12. Earnings per share
Continuing operations
EUR
2.0
1.82
1.8
1.6
1.4
1.21
1.2
1.0
0.8
0.71
0.6
0.4
0.2
0.0
12
2012
© Metso
Capital Markets Day 2013
1-6/2013
1-9/2013

13. EBITA-% before NRE and ROCE-%
Mining and Construction & Automation
EBITA-% before NRE
%
Operational ROCE-%
45.0
16.0
13.5
14.0
12.0
12.0
11.2
13.0
12.6
11.1
10.9
11.8
39.0
40.0
35.3
35.0
31.8
28.9
30.0
10.0
25.0
24.3
25.3
28.7
25.2
8.0
20.0
6.0
15.0
4.0
10.0
2.0
0.0
5.0
0.0
Mining and Construction
2010
13
© Metso
2011
Automation
2012
Capital Markets Day 2013
1-9/2013
Mining and Construction
2010
2011
Automation
2012
1-9/2013

14. We have a strong financial foundation
Net sales1
EBITA before NRI1
Operational ROCE1
EUR billion
EUR million
Percentage
CAGR (2006-12)
7.5%
1.2
1.2
1.2
3.3
2.8
12.4%
1.1
3.7
1.0
2.9
4.4
3.7
1.0
Average margin (2006-12)
14.1%
13.9%
12.0%
11.2% 11.5%
14.0%
10.3%
3.1
463
0.8
-06
-07
Equipment
14
© Metso
-09
390
-10
-11
35.1% 34.9%
31.3%
30.2%
24.0% 25.0%
20.2%
428
344
Strong return
on capital
Improving
profitability
Services
CAGR 9.0%
-08
Average (2006-12)
521
517
305
Services
28.7%
-12
Book-to-bill ratio
Capital Markets Day 2013
-06
-07
-08
EBITA
-09
-10
-11
-12
-06
-07
EBITA-%
1) Combined Mining and Construction and Automation figures unless
otherwise noted
-08
-09
-10
ROCE-%
-11
-12

15. Balance sheet
Continuing operations
EUR million
2012 Dec
2013 Sep
Balance sheet total
4,000
3,915
Total non-current assets
1,110
1,261
Goodwill
442
448
Other intangible assets
120
117
Property, plant and equipment
392
478
Financial and other non-current assets
156
218
Total current assets
2,890
2,654
Equity
1,359
1,232
Interest-bearing liabilities
1,094
1,107
Net debt
385
491
Gearing
28.3%
39.9%
ROCE before taxes
19.2%
17.6%
ROCE after taxes
13.8%
12.9%
n/a
36.5%
Equity to assets ratio
15
© Metso
Capital Markets Day 2013

16. Balance sheet structure as of September 30, 2013
Continuing operations
EUR million
4,500
3,915
4,000
3,000
448
Goodwill
3,500
813
Fixed assets
2,500
Inventories
2,000
1,500
1,000
Other
receivables*
Capital Markets Day 2013
616
Equity
1,070
Other
liabilities
Net working
capital
112
394
1,004
0
© Metso
1,232
1,034
Bank and cash
500 and interestbearing
receivables
16
3,915
Net interest
bearing loans
1,107
Provisions
Advances
received
Interestbearing debt

17. Capital employed
Continuing operations
MEUR
20%
3,000
2,500
19%
2,000
18%
1,500
17%
1,000
16%
500
0
2012
Net working capital
17
© Metso
Q2/2013
Fixed assets
Capital Markets Day 2013
Goodwill
Interest bearing and non-operative items
Q3/2013
ROCE-% before taxes
15%

18. Net debt and net working capital
Continuing operations
Net debt and gearing
Net working capital and NWC to
net sales
EUR million
1200
%
60
48.0
1000
39.9
800
50
EUR million
800
700
692
16
15.2
14.4
580
600
40
13.7
630
14
12
565
600
491
385
400
20
200
10
0
0
Net Debt
18
30
© Metso
Capital Markets Day 2013
Gearing
500
10
400
8
300
6
200
28.3
4
100
2
0
0
Net working capital, EUR
NWC, as % of net sales
%

19. Net working capital
Mining and Construction & Automation
MEUR
900
25%
800
20%
700
600
15%
500
400
10%
300
200
5%
100
0
2008
2009
2010
NWC
19
© Metso
Capital Markets Day 2013
2011
NWC/NS -%
2012
Q3 / 2013
0%

20. Gross capital expenditure
Continuing operations
MEUR
160
250%
140
200%
120
100
150%
80
100%
60
40
50%
20
0
A2005
A2006
A2007
Gross capex
20
© Metso
Capital Markets Day 2013
A2008
Capex acquisitions
A2009
A2010
A2011
A2012
Q3 A2013
Gross capex / depreciations and amortizations -%
0%

21. Free cash flow
Continuing operations
500
125%
450
140%
114%
120%
400
100%
350
300
80%
250
60%
200
150
40%
100
20%
50
0
2008
2009
2010
Free cash flow
21
© Metso
Capital Markets Day 2013
2011
2012
Cash conversion -%
From 2006 onwards only maintenance investments are included in FCF.
1-9/2013
0%

22. Capital structure ratios
Continuing operations
%
90
80
70
60
48.0
50
36.1
40
36.5
39.9
28.3
30
20
10
0
2012
Equity to assets ratio -%
22
© Metso
Capital Markets Day 2013
Q2/2013
Gearing -%
Q3/2013
Debt to capital -%

23. Funding facilities
Corporate-level funding facilities as of October 10, 2013,
excluding loans to be transferred to Valmet
•
EUR 1.5 billion EMTN program
-
EUR 200 million 7.25% bond due in 2014
EUR 400 million 2.75% bond due in 2019
EUR 174 million private placements due in 2018 – 2022
•
Bilateral long-term loans: EUR 5 million maturing
in January 2014
•
Syndicated long-term loan: USD 287 million maturing
in 2018
•
Committed EUR 500 million 5-year syndicated revolving
credit facility available until 2015 (currently undrawn)
•
•
EUR 500 million domestic CP program
23
Uncommitted lines of credit
© Metso
Capital Markets Day 2013

24. Debt and maturity structure
Excluding loans to be transferred to Valmet
MEUR
October 10, 2013
2000
1800
1600
Undrawn committed
facilities
1400
1200
Short-term debt
1000
Other long-term debt
Syndicated long-term debt
800
Private placements
600
400
Euro Bond 2014
Euro Bond 2011
200
Euro Bond 2019
0
1.1.2011 09/2011 06/2012 03/2013 10/2013 06/2014 03/2015 12/2015 09/2016 06/2017 03/2018 12/2018
YTD Monthly
24
© Metso
Capital Markets Day 2013
Maturities monthly >

25. Balance sheet & financing
• Metso’s capital allocation policy is based on a commitment
to maintain the Group investment grade rating and honor
Metso’s dividend policy
• Metso’s business portfolio and business model generate
solid cash flows both good and less good times
• All balance sheet key indicators indicate solid capital
management, and improvement of net working capital
management remain high on the agenda
• Financial measures and the balance sheet impact are seen
as key M&A criteria
25
© Metso
Capital Markets Day 2013

26. EUR 100 million global efficiency program under way
Announced on October 24, 2013
Two phases – fast track and structural / development projects
• Fast track = project identified and ongoing at different stages
-
26
Projects announced
Large number of other ongoing but unannounced projects
• Divestment of parts of the industrial conveyor belt business in Europe
• Restructuring of the metal recycling business
• Union negotiations related to Finnish foundry operations
• Restructuring of the EMEA sales and services organization
• Transfer or closure of small operations in various countries
• Resizing of Metso’s headquarters
• Restructuring of Process Automation Systems
Most of the decisions will be taken in 2013, leading to one time costs in 2013
Decisions and costs will also affect 2014
The identified gross savings are EUR 60 – 80 million and we expect to have the full
run rate during late 3Q/2014
© Metso
Capital Markets Day 2013

27. EUR 100 million global efficiency program under way
Announced October 24, 2013
Two phases – fast track and structural / development pojects
• Structural and development projects = projects in the planning pipeline (2014
decisions)
-
Streamlining of support functions
Streamlining of legal structure
New projects derived from cost structure studies
Capacity adjustment needs related to unexpected demand changes
The improvement impact is neing assessed and not part of the EUR 60 – 80 million
fast track project referred to before
• Global effeciency program also includes our global procurement development
activitities. We are targeting annual savings between EUR 30 – 50 million
-
27
In 2013, we expect to save EUR 20 – 30 million
© Metso
Capital Markets Day 2013

28. Guidance & market outlook terms
Guidance:
Market outlook:
At around = +/- 0 - 5% on EUR-based
net sales and EBITA
Excellent = Demand exceeding supply
and excellent pricing environment
At around = +/- 0 - 0.5% on EBITA -%
Good = Demand and supply in balance
Somewhat = +/- 5 - 10% on EUR-based and healthy pricing environment
net sales and EBITA
Satisfactory = Supply exceeds demand
and more work is needed to fill capacity.
OR
Pricing is becoming more volatile
Somewhat = +/- 0.5 –1.0% on EBITA -%
Weak = Buyers market! Suppliers have
Significant = +/- > 10% on EUR-based
overcapacity and pricing may become
net sales and EBITA
unhealthy
OR
Significant = +/- > 1.0% on EBITA -%
28
© Metso
Capital Markets Day 2013

29. Backlog coverage & delivery times
Automation
Mining and Construction
Flow control = Normal backlog
covers 5-6 months of net sales
Minerals processing systems = High
project content; coverage ~1 year
Process automation system = High
project content; coverage ~1 year
Construction equipment = Normal
backlog covers 3-4 months
Services = Coverage 2-3 months
on average
Services = Coverage 3-4 months
on average
In general, when delivery times (backlog
coverage) get longer the better the market
conditions are. Largest change takes place
in major build-to-order equipment.
29
© Metso
Capital Markets Day 2013