Metso reported its fourth quarter and full year 2013 results. Key highlights include: - Orders received in Q4 2013 were EUR 885 million, down 10% year-over-year. Full year orders were EUR 3,709 million, down 12%. - Net sales in Q4 2013 were EUR 1,018 million, down 10% year-over-year. Full year net sales were EUR 3,858 million, down 10%. - EBITA for Q4 2013 was EUR 147 million at a 14.4% margin, up from EUR 138 million at 12.2% margin in Q4 2012. Full year EBITA was EUR 496 million at a

1. Fourth quarter and full year
2013 results
Matti Kähkönen, President and CEO
Harri Nikunen, CFO
February 6, 2014
© Metso
www.metso.com

2. Forward looking statements
It should be noted that certain statements herein which are not historical facts, including, without limitation,
those regarding expectations for general economic development and the market situation, expectations for
customer industry profitability and investment willingness, expectations for company growth, development
and profitability and the realization of synergy benefits and cost savings, and statements preceded by
”expects”, ”estimates”, ”forecasts” or similar expressions, are forward-looking statements. These
statements are based on current decisions and plans and currently known factors. They involve risks and
uncertainties which may cause the actual results to materially differ from the results currently expected by
the company.
Such factors include, but are not limited to:
1)
general economic conditions, including fluctuations in exchange rates and interest levels which
influence the operating environment and profitability of customers and thereby the orders received by
the company and their margins
2)
the competitive situation, especially significant technological solutions
developed by competitors
3)
the company’s own operating conditions, such as the success of production, product development and
project management and their continuous development and improvement
4)
the success of pending and future acquisitions and restructuring.
2
© Metso

3. Content
1. Q4 and full year 2013 highlights
2. Strategic development
3. Financial performance
4. Outlook and guidance
3
© Metso

4. HSE (Health, Safety & Environment)
An essential element in all our activities
•
We are committed to taking personal
responsibility for our own safety and for the
safety of others
•
We believe that all incidents can be
prevented
•
We always emphasize our high HSE
standards of conduct when dealing with
customers, suppliers, and other
stakeholders
•
We aim to minimize our environmental
footprint throughout the entire value chain
4
© Metso
Lost time incident frequency
16.0
14.0
12.0
10.0
8.0
6.0
4.0
2.0
0.0

5. Q4 and full year 2013
highlights
Matti Kähkönen
President and CEO

6. Highlights
Full year 2013
•
•
Oil & gas-related demand was good - mining market was soft
•
Net sales were EUR 3,858 million (EUR 4,282 million), of which EUR 1,976 million (EUR
2,072 million) services sales
•
•
•
•
EBITA before NRE was EUR 496 million, 12.8% of net sales (EUR 486 million, 11.4%)
Orders received were EUR 3,709 million (EUR 4,215 million), of which EUR 2,038 million
(2,153 million) services orders
Non-recurring expenses totaled EUR 54 million
Pulp, Paper and Power businesses were separated to Valmet Corporation
The Board proposes a dividend of EUR 1.00 per share, i.e. 63% of earnings per share
Fourth quarter 2013
•
Orders received EUR 885 million (EUR 982 million), of which EUR 457 million (EUR 494
million) services orders
•
Net sales were EUR 1,018 million (EUR 1,132 million), of which EUR 509 million (EUR 550
million) services sales
•
•
EBITA before NRE was EUR 147 million, 14.4% of net sales (EUR 138 million and 12.2%)
6
Non-recurring expenses totaled EUR 33 million
© Metso
Figures in the brackets refer to same period last yer unless otherwise
stated

7. Order intake
Metso
EUR million
1,600
EUR million
5,000
1,466
1,400
1,117
1,200
1,000
767
800
600
558 550 563
1,168
1,100
1,055
826 850 838
828
825
637
885 3,000
2,307
2,000
1,000
2009
2010
2011
2012
Services orders received
FY
FY
250
224 225
220 225
200
177 177 174
159
179
167
197
FY
FY
2010
2011
2012
Services orders received
Capital orders received
2013
Mining and construction
EUR million
1,400
254
134
FY
2009
EUR million
300
155
0
2013
Capital orders received
Automation
239
1,263
1,200
914
200 209 1,000
191 206
800
129
600
100
400
50
0
3,709
3,281
1,031
968
965 982
200
150
4,215
4,000
400
0
4,466
608
414 423 449
660 686 688
964
886
891
787 794 786
651
635
491
200
2009
2010
2011
Services orders received
7
© Metso
2012
2013
Capital orders received
0
2009
2010
2011
Services orders received
743
2012
2013
Capital orders received
691

8. Order intake in top 10 countries
EUR million
Country
USA
2013
486
2012
580
Change %
-16
% of total
13
China
317
265
19
8
Brazil
314
414
-24
8
Chile
245
177
38
7
Australia
213
283
-25
6
Finland
183
175
5
5
Sweden
163
201
-19
4
Canada
148
193
-24
4
Russia
141
300
-53
4
India
121
195
-38
3
•
US is clearly our biggest market; orders declined in Mining and
Construction, grew in Automation
•
•
Orders from China increased in both segments
8
Emerging markets accounted for 56 percent (55%) of orders received and
52 percent (49%) of services orders received
© Metso

9. Net sales
Metso
EUR million
EUR million
1,600
5,000
4,282
1,400
1,156
1,200
1,132
1,116
1,075
1,018
988
959
937
915
4,000
800
871 901
898
735 746
685
736
647
726 748
2,902
FY
3,000
3,018
FY
2009
1,000
3,858
3,672
2010
Services net sales
744
2,000
600
400
1,000
200
0
2009
2011
2010
Services net sales
Automation
0
2013
2012
Capital net sales
244
198
177 180
152
150
166
146 156 151
185
165 176
249
232
182
211
FY
2011
2012
Capital net sales
EUR million
1,000
250
FY
2013
Mining and construction
EUR million
300
200
FY
233
184
928
800
207 214
600
711 736
717
268 581 540 579
584 609
899 882 924
787
744
592
509
400
100
200
50
0
2009
9
2010
© Metso
2011
Services net sales
2012
Capital net sales
2013
0
2009
2010
2011
Services net sales
2012
Capital net sales
2013
800
742
784

10. Profitability has developed well
%
18
EUR million
200
13.0
150
11.6 11.9
10.8
9.4
8.7
100
10.2
11.9
12.9
9.1 8.7
8.0
14.4
13.7
12.2 12.0 12.2
0
14
12
10
8.7
8
149
50
11.2
11.9
16
80
Q1
65
Q2
89
59
Q3
61
Q4
Q1
74
Q2
2009
EBITA*-%
86
Q3
2010
107
107
67
Q4
Q2
103
83
75
Q1
136 129 138
118
129
147
6
4
2
EBITA *
Q3
2011
Q4
Q1
Q2
EBITA-% *
Q3
Q4
2012
Q1
Q2
Q3
2013
EBITA-% target range
Q4
0
600
500
12.8
10.1
10.9
8
300
486
200
292
328
496
399
6
4
100
2
0
FY
FY
FY
FY
FY
2009 2010 2011 2012 2013
EBITA *
EBITA-% *
Q4/2012
14.3
12.9
Improved gross margins in all businesses
Automation
15.0
13.2
Good performance in the Flow Control business
Metso total
14.4
12.2
Sales mix, cost savings
* Before non-recurring items
12
10
Q4/2013
© Metso
11.4
400
Mining and Construction
10
10.9
%
14
0

11. Financial targets
2013
Net sales
Growth to exceed market growth
+/-
Services net sales
>10% annual growth on average
-5%
Profitability (EBITA %)
11-16% before NRE
12.8%
Return on capital
employed (ROCE)
At least 30% (before taxes)
19.3%*
Earnings per share
To grow faster than net sales
Capital structure
Supporting a solid investment-grade
credit rating
BBB,
Baa2
Dividend payout
At least 50% of annual earnings per
share
63% **
11
© Metso
+
* Illustrative
** The Board proposes a dividend of EUR 1.00 per share, i.e. 63% of
earnings per share

12. Strategic development in 2013
Services
Technology
offering
Acquisitions and a new JV in China
Development of area organizations
Operational
excellence
Procurement and cost-efficiency actions
Gross profit improvement
Health and safety performance
People and
leadership
© Metso
Development of MetsoDNA automation platform
High-pressure grinding mill (HRC ™)
Cost efficient high pressure ball valve for demanding shut-down applications
Growth
countries
12
We became the only full-scope supplier of comminution wears (Sabo acquisition)
New services hubs opened and under construction
Good progress in life-cycle services
Leadership development
Share of personnel in emerging market increased to 46%
Performance culture

13. Financial performance
Harri Nikunen, CFO

14. Group key figures
EUR million
Q4/2013
Q4/2012
Change %
2013
2012
Change %
Orders received
885
982
-10
3,709
4 ,215
-12
Services orders received
457
494
-7
2,038
2,153
-5
1,018
1,132
-10
3,858
4,282
-10
509
550
-7
1,976
2,072
-5
50
49
51
48
147
138
496
486
14.4
12.2
12.8
11.4
108
125
423
458
1.59
1.71
Net sales
Services net sales
% of net sales
EBITA *
% of net sales
EBIT **
6
-14
Earnings per share, EUR
Non-recurring items excluded from EBITA
EUR million
Q4/2013
Q4/2012
2013
2012
24.1
11.2
23.9
13.2
Other
9.0
- 2.4
29.7
-2.5
Total
33
9
54
10.7
Restructuring
14
© Metso
* Before non-recurring items
** Q4/2013 includes non-recurring expenses of EUR 33 million and full-year 2013 EUR 54 million
0
-9

15. Group key figures
Balance sheet
2013
2012
Return on equity
(ROE), %
20.3
19.8
Return on capital employed
(ROCE) before taxes, %
19.3
20.1
Gearing at the end of the
period, %
41.6
24.5
•
•
15
Balance sheet structure is different after the demerger
About EUR 800 million of equity was transferred to Valmet
© Metso
Balance sheet figures for Metso’s continuing operations for 2012 are unaudited and illustrative. Accounting
principles were presented in a stock exchange release published on November 12, 2013

16. Indebtedness and net working capital
Net debt and gearing
Net working capital
EUR million
%
491
500
50
EUR million
700
%
18
692
627
41.6
400
600
16
40
500
15.9
16.0
316
300
30
24.5
200
20
14
400
300
12
200
100
10
10
100
0
2012
2013
Net debt
16
© Metso
Gearing
0
0
2012
Net working capital, EUR
Balance sheet figures for Metso’s continuing operations for 2012 are unaudited and illustrative.
Accounting principles were presented in a stock exchange release published on November 12, 2013
2013
NWC, as % of net sales
8

17. Mining and Construction key figures
EUR million
Orders received
without currency impact
Services orders received
Net sales
without currency impact
Services net sales
% of net sales
EBITA *
% of net sales
Return on capital
employed **
Q4/2013
Q4/2012
Change %
2013
2012
Change %
691
794
2,855
3,436
361
784
409
924
1,616
3,070
1,771
3,492
393
50
112
14.3
445
48
119
12.9
-13
-5
-12
-15
-8
-12
1,579
51
401
13.1
1,692
48
420
12.0
-17
-13
-9
-12
-8
-7
25.1
28.9
-6
Q4/2013 vs. Q4/2012
•
17
Gross margin improved
© Metso
* Before non-recurring items
** Excluding cash and other non-operative balance sheet items,
annualized
-5

18. Mining and Construction
Rolling 12-month net sales and EBITA%
%
EUR million
4,000
16
3,500
14
3,000
12
2,500
10
2,000
8
1,500
6
1,000
4
500
2
0
Q1
Q2
2007
Q3
Q4
2007
Q1
Q2
2008
Q3
Q4
2008
Q1
Q2
2009
Q3
Q4
2009
Q1
Q2
2010
Q3
Q4
2010
Q1
Q2
2011
Q3
Q4
2011
Q1
Q2
Q3
2012
Q4
2012
Q1
2013
Services net sales, rolling 12 months
© Metso
Capital net sales, Mining, rolling 12 months
Capital net sales, Construction, rolling 12 months
18
EBITA-% *, rolling 12 months
* Before non recurring items
Q2
Q3
Q4
2013
0

19. Automation key figures
EUR million
Orders received
without currency impact
Services orders received
Net sales
without currency impact
Services net sales
% of net sales
EBITA *
% of net sales
Return on capital
employed **
Q4/2013
Q4/2012
Change %
2013
2012
Change %
209
206
902
845
96
249
84
233
422
854
382
859
116
47
37
15.0
105
45
31
13.2
2
6
14
7
11
10
398
47
116
13.6
380
44
101
11.8
7
10
10
-1
2
5
38.5
31.8
22
Q4/2013 vs. Q4/2012
•
•
19
Improvement driven again by Flow Control
Services orders increased strongly, 14% year-on-year, 20% without currency impact
© Metso
* Before non-recurring items
** Excluding cash and other non-operative balance sheet items
15

20. Automation
Rolling 12-month net sales and EBITA%
EUR million
%
1,000
18
900
16
800
14
700
12
600
10
500
8
400
6
300
4
200
2
100
0
Q1
Q2
2007
Q3
Q4
2007
Q1
Q2
2008
Q3
Q4
2008
Services net sales, rolling 12 months
20
© Metso
Q1
Q2
2009
Q3
Q4
2009
Q1
Q2
2010
Q3
Q4
2010
Capital net sales, rolling 12 months
* Before non-recurring items
Q1
Q2
2011
Q3
Q4
2011
Q1
Q2
2012
Q3
Q4
2012
Q1
Q2
2013
Q3
Q4
2013
EBITA-% * before non-recurring items, rolling 12 months
0

21. EUR 100 million global efficiency program under way
• Fast track = A reduction of over 1000 persons identified. Total savings potential
between 2014 – 2015 is EUR100 – 130 million (including procurement)
-
•
About 40% of projects finalized with savings running
EUR 26.5 million of one-time costs were booked in 2013 with more to come in 2014
Savings from all projects to be achieved during Q4/2014 at the latest (except for 2015
procurement)
Structural and development projects -> additional savings
-
21
Most of the decisions for the remaining 60% have been taken with implementation in
2014. Savings coming in partially in 2014 and full impact in 2015
The”fast track” will be complemented with projects related to Metso’s legal and support
function structure. The action has been taken and results are expected during the
second half of 2014 and in 2015
Additional savings related to lower than expected demand from the mining industry
being planned
The scope of actions and more specific targets will be announced during Q1/2014
© Metso

22. Outlook and guidance
Matti Kähkönen
President and CEO

23. Market outlook
Mining
Construction
Automation
55% of net sales in 2013
55% service intensity
20% of net sales in 2013
40% service intensity
22% of net sales in 2013
45% service intensity
Current demand:
Weak for the equipment and project
business. Services good.
Current demand:
Satisfactory for the equipment and
services.
Current demand:
Good in oil & gas; satisfactory in pulp
& paper. Services good.
3-6 months market outlook (  )





Equipment
23

Services
Equipment
Services
Equipment
Services
© Metso

24. Order backlog
EUR million
EUR million
3,000
3,000
2,506
2,500
2,324
1,927
2,000
1,731
Deliveries
after 2013
2,000
Deliveries
after 2014
1,500
1,000
Deliveries in
2013
1,000
Deliveries in
2014
500
0
2010
2011
Mining and Construction
•
•
•
•
24
2012
2013
0
Order backlog Dec 31, 2012
Order backlog Dec 31, 2013
Automation
Opening backlog for 2014 was EUR 300 million lower than opening backlog for 2013
Services backlog is EUR 25 million down compared with last year
Automation backlog grew by EUR 49 million
Biggest drop in mining equipment and projects
© Metso

25. Guidance for 2014
Based on our market outlook, backlog for
2014, current exchange rates and
ongoing cost-efficiency actions, we
estimate that
• our net sales in 2014 will be
somewhat below 2013
• and EBITA margin before non
recurring items for 2014 will be at
around 12%
25
© Metso

26. www.metso.com
company/metso
metsoworld
metsogroup
metsoworld
metsogroup