Metso is pursuing a strategy to grow its aggregates business faster than the market through growth initiatives focused on distribution, mid-market customers, and aggregates systems. Metso provides crushing and screening products to contractors and quarries and has seen growth in orders received from distribution channels and mid-market customers in recent quarters. Metso aims to offer customers the best solutions and be the leader in aggregates crushing and screening globally.

1. © Metso
Growing faster in aggregates
Metso Capital Markets Day
June 1, 2017
Markku Simula, Senior Vice President
Aggregates business line, Minerals Capital business area

2. © Metso Metso Capital Markets Day 2017 | Markku Simula | Senior Vice President, Aggregates business line | Minerals business area
Contractors are using aggregates for their construction sites.
Contract to contract planning.
2

3. © Metso Metso Capital Markets Day 2017 | Markku Simula | Senior Vice President, Aggregates business line | Minerals business area
Quarries are selling aggregates to their customers.
Long-term life cycle planning.
3

4. © Metso© Metso
Our strategy: to grow faster than the market
Metso Capital Markets Day 2017 | Markku Simula | Senior Vice President, Aggregates business line | Minerals business area
Growth
Position
Channels
Value
Offer our customers the best cost, best availability,
easy-to-buy and easy-to-own solutions
Approach our customers globally through many
channels and offerings
Be the undisputed leader in aggregates crushing
and screening solutions globally
Grow faster than the market
4

5. © Metso© Metso
Our portfolio: crushing and screening products
Metso Capital Markets Day 2017 | Markku Simula | Senior Vice President, Aggregates business line | Minerals business area
Aggregates systemsCrushers
Screens
and feeders
Mobile plants Digital solutions
5

6. © Metso© Metso
We are growing and improving profitability
Metso Capital Markets Day 2017 | Markku Simula | Senior Vice President, Aggregates business line | Minerals business area
NEED
0
100
200
300
400
500
Q1/2012 Q1/2013 Q1/2014 Q1/2015 Q1/2016 Q1/2017
Orders received, rolling 12 months
Growth faster
than market
growth
Main growth initiatives
- Distribution
- Mid-market
- Systems
Improved
profitability with
lower volumes
Main profitability initiatives
- Price management
- Addressing low performing
products and businesses
- Quality and warranties
- Fixed costs
-10%
0%
10%
0
100
200
300
400
500
Q1/2012 Q1/2013 Q1/2014 Q1/2015 Q1/2016 Q1/2017
Sales, rolling 12 months Adjusted EBITA, % , rolling 12 months
6

7. © Metso© Metso
Strong distribution order development
Metso Capital Markets Day 2017 | Markku Simula | Senior Vice President, Aggregates business line | Minerals business area
0
50
100
150
200
Q1/2015 Q1/2016 Q1/2017
Quarterly orders received, indexed
Offering and coverage
- Improve distribution management
- Increase coverage by filling white spots
- Expand offering through distribution channel, new
opportunities with systems and mid-market
Tools and capabilities
- Develop financial solutions
- Improve availability
- Remove internal hurdles
Aggregates growth
in distribution
7

8. © Metso© Metso
Mid-market growing fastQuarterlyordersreceived
Metso Capital Markets Day 2017 | Markku Simula | Senior Vice President, Aggregates business line | Minerals business area
0
50
100
150
200
250
Q1/2015 Q1/2016 Q1/2017
Quarterly orders received, indexed
China-based mid-market
- Offering expansion and product upgrades
- China-based mid-market exports
- Domestic sales and service expansion
Indian domestic market – Mobile crushers
- Sales coverage expansion
- Strategic cooperation in manufactured sand
- New competitive container-based mobile offering
Indian export market – Mobile crushers
- New competitive container-based mobile offering
- Sales coverage expansion
Aggregates growth
in mid-market
8

9. © Metso© Metso
Strong systems order pipeline
0
100
200
300
400
500
600
Q1/2015 Q1/2016 Q1/2017
Quarterly orders, indexed Rolling 12 months orders
Metso Capital Markets Day 2017 | Markku Simula | Senior Vice President, Aggregates business line | Minerals business area
- New operating model and organizational focus in place
- Establish new regions and countries
- Sell systems through distribution channel
- Expand systems offering with mid-market products
Aggregates growth
in systems
9

10. company/metso metsogroup metsoworldmetsoworld metsogroup
www.metso.com